Growth slowing down everywhere

July 24, 2012 03:54

It could get much worse if we hit the “fiscal cliff”: A combination of expiring tax cuts and slashed federal spending set for Dec. 31 would cut the federal budget deficit by an amount equal to 4 percent of U.S. gross domestic product, throwing millions of people out of work if Congress doesn’t stop them. – Business Insider



By Tim Mullaney at Business Insider



As the recovery slows, optimism is giving way to caution, with undercurrents of something darker. Economic forecasts are coming down all over Wall Street: Goldman Sachs and Deutsche Bank both cut forecasts of second-quarter growth to just over 1 percent.


Companies from chipmaker Intel to Morgan Stanley have missed or lowered earnings forecasts — 99 companies in the Standard& Poor’s 500 lowered second-quarter projections. In June, 22 of 30 U.S. economic data reports also missed forecasts, Merrill Lynch said.

“We’re worried about growth slowing down everywhere, and about it being self-reinforcing,” said Peter Fisher, global head of fixed income for Black Rock, the world’s largest asset manager. “I’m less worried about whether growth is slowing, and more worried about how much farther we have to go.”
“We’re not going to hire until we know we can grow,” Diels said.



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