Goldman Sachs Turns Even More Bearish, Sees Bigger Risk Of Worst-Case Scenario

Sinking Boat

Photo: www.julienberthier.org

Goldman Sachs has been turning more bearish throughout 2010, and now is more pessimistic than ever (via Zero Hedge). The bank now sees a 25% probability of its worst-case scenario, which means GDP growth of less than 2.5% for 2010.

There’s a lot more bad news from the bank, so check out the most important slides to get a grasp of their negative outlook.

New data points to a deeper recession, and a slower recovery.

Source: Goldman Sachs via Scribd

Consumer confidence and unemployment are making the situation worse.

Source: Goldman Sachs via Scribd

Housing numbers have also come in weaker than expected.

Source: Goldman Sachs via Scribd

Some good news: No indication of a new contraction.

Source: Goldman Sachs via Scribd

The possibility of a single quarter of negative growth exists.

Source: Goldman Sachs via Scribd

Growth is expected to hit 2% for 2011.

Source: Goldman Sachs via Scribd

And now the bad case scenario has risen to 25%.

Source: Goldman Sachs via Scribd

2011's outlook is even worse, real GDP lower.

Source: Goldman Sachs via Scribd

There might be a slowing in what was an improving labour market.

Source: Goldman Sachs via Scribd

Households may raise savings as a result of uncertain environment.

Source: Goldman Sachs via Scribd

The government still isn't spending to boost the economy.

Source: Goldman Sachs via Scribd

It is all about growth in foreign markets for U.S. companies.

Source: Goldman Sachs via Scribd

Check out Goldman's Jan Hatzius second half slowdown call...

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