Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : Gold and Silver Juniors, Mid-tiers and Producers -- Ignore unavailable to you. Want to Upgrade?

To: LLCF who wrote (53486)	11/27/2007 3:15:42 PM
From: Rocket Red	Read Replies (1) \| Respond to of 78410

U.S. recession clouds darkening Tuesday, November 27, 2007 Goldman Sachs now puts the odds of a U.S. recession next year at 40 per cent to 45 per cent, up from an earlier 30 per cent, citing the worsening housing slump. And as house prices continue to spiral downward, it sees “increased evidence of spillovers from housing to consumption,” with rising mortgage credit losses triggering a “broad-based tightening of credit availability.” As a result, it expects combined U.S. household and business spending to contract slightly in the first half of 2008, as well as a 3 per cent decline in after-tax profits for the year. That should prompt the Federal Reserve to cut its federal funds rate target to 3 per cent by mid-2008, compared with an earlier Goldman forecast of 4 per cent. “Although Fed officials have given no signs that they plan to ease significantly further, we expect them to change their minds as the housing-related damage becomes more visible in data, anecdotal reports about business activity, and/or conditions in financial markets remain strained,” Goldman contends. © Copyright The Globe and Mail