GOLDMAN'S TOP ECONOMIST MAKES IT OFFICIAL: HERE COMES THE SECOND HALF SLOWDOWN

snail truck slow

Photo: Robert Thomson via Flickr

Goldman Sachs’ Jan Hatzius has released a new report on the U.S. economy subtitled “The Second Half Slowdown.” If that wasn’t depressing enough, the details may be.Hatzius’ report (via Paul Kedrosky) details the key headwinds facing the American economy, many of which have the impact of building a deflationary environment.

The charts provide an excellent of brief of the negative potential for the second half of 2010 and what investors should be preparing themselves for.

Fiscal policy is becoming more restrictive to growth

Source: Goldman Sachs via Paul Kedrosky

Layoffs have actually been on target

Source: Goldman Sachs via Paul Kedrosky

and the labour market shows little signs of improvement

Source: Goldman Sachs via Paul Kedrosky

Capital spending is dissapointing

Source: Goldman Sachs via Paul Kedrosky

but the reality is, spending should not be high

Source: Goldman Sachs via Paul Kedrosky

Housing is still a big problem

Source: Goldman Sachs via Paul Kedrosky

And the European crisis threatens as well

Source: Goldman Sachs via Paul Kedrosky

Inflation is going down but...

Source: Goldman Sachs via Paul Kedrosky

but deflation is a real concern

Source: Goldman Sachs via Paul Kedrosky

Fiscal stimulus will not be there to save us

Source: Goldman Sachs via Paul Kedrosky

because public debt is still rising

Source: Goldman Sachs via Paul Kedrosky

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