Economic Scenarios: Bad and Very Bad !!

Right now, Goldman Sachs’ Jan Hatzius is speaking on a panel and just told the audience there are only two economic scenarios for the U.S. right now: bad and very bad.

Those scenarios are summed up as followed (via Jim Pethokoukis):

Bad: 1-2% GDP growth and an increase to 10% unemployment

Very Bad: Double-dip recession, based on Bush tax cut expiring and declining home prices

Goldman Sachs put together as presentation explaining their new bearish view on the economy, and it doesn’t make for easy reading. But if you want an understanding of the the terrible scenarios they’ve envisioned, check it out here. 

Click here to see the presentation >

Read more: http://www.businessinsider.com/jan-hatzius-very-bad-scenario-2010-10#ixzz11V4HwX7m

Economy to Remain Weak– More Woes for Obama Agenda

WASHINGTON – The nation’s economic growth tailed off sharply in the spring and probably isn’t faring any better now.

Gross domestic product — the broadest measure of the economy’s health — expanded at a feeble 1.7 percent annual rate in the April-June quarter, The Commerce Department reported Thursday.

That’s a notch higher than the 1.6 percent growth rate the government estimated a month ago. The slight change was mostly due to a little more spending by consumers than first estimated. Still, that’s not enough to have a major impact on the economy.

The second quarter estimate is a sharp slowdown from a 3.7 percent growth rate logged in the first quarter.

Most economists expect growth to be similarly weak in the July-September quarter, with estimates ranging between 1.5 percent and 2 percent. The government’s first report on third quarter GDP will be released Oct. 29. Unemployment — now at 9.6 percent — is expected to stay high or even rise in the coming months.

Americans aren’t spending enough to give companies the kind of confidence in the economy that leads to rapid hiring.

for full article: http://news.yahoo.com/s/ap/us_gdp