US, Europe may be close to recession: Analysts

[villager]

Source: Marketwatch

US, Europe may be close to recession: Analysts

NEW YORK (MarketWatch) — Morgan Stanley analysts cut their outlook for global economic growth in a note late Wednesday, and sounded alarm bells that the U.S. and Europe are “hovering dangerously close to a recession.”

The analysts lowered their global economic growth in 2011 to 3.9%, down from a previous estimate of 4.2%. They now see growth for 2012 at 3.8%, down from 4.5%. In the developed markets, the analysts expect growth of 1.5% this year and next, down from a previous estimate of 1.9% and 2.4% respectively.

The forecast contributed to widespread gloom about the state of the world economy, which is being battered by a host of negatives. Asia is beset by Japan’s difficulties recovering from the March earthquake and tsunami, Europe’s sovereign debt crisis has spooked investors around the world and there are growing fears the United States may tumble back into recession.

A “negative feedback loop between weak growth and soggy asset markets“ appears in the making in Europe and the U.S, the note said.

Policy errors in the U.S. and Europe, as well as the prospect of fiscal tightening, is eroding business and consumer confidence, it added.

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Read more: http://www.marketwatch.com/story/us-europe-may-be-close-to-recession-analysts-2011-08-18

[coalition_unwilling]

1. I blame Republicans - n/t

[xchrom]

2. A steady 9.9 % unemployment will do that after a while.

France & Germany have done well - but Brussels has not been kind to the rest.

[Initech]

3. And corporate profits and CEO pay continue to sky rocket.

:grr:

[KILL THE WISE ONE]

4. think 1937 - stimulus was cut back and the double dip hit.

[FedUp_Queer]

5. Well, duh.

[maxsolomon]

6. we've been in recession since 2008.

we never really got out of it. maybe TECHNICALLY, but not in any way that the middle class has noticed.

[jannyk]

7. +1