(Reuters) - Morgan Stanley slashed its global growth forecast for 2011 and 2012, saying the U.S. and the euro zone were "dangerously close to a recession", and criticized policymakers in Washington and Europe for not acting more decisively to contain the sovereign debt crisis.
The bank cut its global gross domestic product growth forecast to 3.9 percent from 4.2 percent for 2011, and to 3.8 percent from 4.5 percent for 2012.
"Our revised forecasts show the US and the euro area hovering dangerously close to a recession — defined as two consecutive quarters of contraction — over the next 6-12 months," Joachim Fels, who co-heads Morgan Stanley's global economics team, said in a research note dated Wednesday.
The bank cut its global gross domestic product growth forecast to 3.9 percent from 4.2 percent for 2011, and to 3.8 percent from 4.5 percent for 2012.
"Our revised forecasts show the US and the euro area hovering dangerously close to a recession — defined as two consecutive quarters of contraction — over the next 6-12 months," Joachim Fels, who co-heads Morgan Stanley's global economics team, said in a research note dated Wednesday.
As gold hit new record highs of $1,832 an oz. Wall Street is rolling down hill fast. Unemployment is still crazy high after all these years. This is very bad news for the American people. Thanks to the Democratic party and Obama 1 in 5 children live in poverty here in America. The Democratic Party promised that this wouldn't happen if they pasted all their economic stimulus bills. But all those bills did was raise our national debt to unsustainable levels. We have yet to get out of the recession that Obama said he would get us out of. I have to say it, we conservatives told you nothing Obama did would work. We told you this would happen and it is. If you vote for more of this then you are just an anarchist.
Aren't you glade you prepared for this next round of recessions? If you are a liberal you didn't do anything. That is your MO.
Two and one half years into the Regime and the PLAN will be revealed soon! What a sad sad commentary! My moneys on the PLAN being SPEND SPEND SPEND!
ReplyDeleteChris,
ReplyDeleteThe current projections are for the US to maintain slight growth, but Austerity measures both here and in Europe could damage that. So there are things you should know about the economy.
1. Austerity measures hurt growth(GDP). Economic reality.
2. Both Europe and the US are in the midst of them and the countries like Britian and Germany have already struggled with GDP after initiating those measures earlier than other countries.
And the unemployment issue isn't all Obama's fault. Austerity measures and Republican/Tea Party cuts to public spending have kept the rates higher than they should be.
1. The private Job market grew 330,000 jobs the past 3 months.
2. The public sector contracted -117,000
3. We have a total of 216,000 over the 3 months
So we have gotten out of the recession he told us he would get us out of and over a year a go. However jobless rate will remain high as long as austerity measures at local, state and Federal levels are maintained. There is no way around the loss of public jobs when cutting spending.
So you and your conservative brethren must accept that your economic beliefs are hurting the economy and the unemployment rate. There's no room to deny it in face of the economic evidence.
Joe Tea Party is keeping UNEMPLOYMENT rates high!
ReplyDeleteWhat has Regime done,just one thing to CREATE a JOB? Not those fuzzy math numbers that come under might have or maybe!
Tax Payers cash in Auto industry saved who? Auto Industry declared bankruptsy anyway. They needed Tax Payers money to declare Bankruptsy WHY? Who benifited from that Middle Class Stock holders(Retirees) or Special Interest?
Regime had two long years to effect the Economy in a POSITIVE way through Job Creation. What did they do?
2010 Elections were a voice of the People mostly Middle Class that Regime has FAILED. Ifin Economy and REAL Jobs to not IMPROVE a one TERMER Nobama will be. Not Bullshit just a FACT!