Tuesday, July 17, 2012

PIMCO’s Gross: U.S. Nearing Recession - As Goldman Cuts Forecast


Pacific Investment Management Co.’s Bill Gross said the U.S. is approaching a recession as economists at Goldman Sachs Group Inc. (GS) and Deutsche Bank AG lowered their forecasts for growth, the good folks at Bloomberg report. 

Goldman Sachs analysts led by Jan Hatzius cut their estimate for second-quarter gross domestic product growth to 1.1 percent from 1.3 percent, while Deutsche Bank’s chief U.S economist, Joseph LaVorgna, reduced his forecast to 1 percent from 1.4 percent. Federal Reserve Bank of Kansas City President Esther George said yesterday the U.S. economy probably won’t grow much faster than 2 percent in 2012.

The U.S. is “approaching recession when measured by employment, retail sales, investment, and corporate profits,” Gross, who runs Pimco’s Total Return Fund, the world’s largest mutual fund, wrote on Twitter yesterday...

Wait...wait...there's more at http://www.bloomberg.com/news/2012-07-17/gross-says-u-s-nearing-recession-as-goldman-sachs-cuts-forecast.html

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