More Solid Goldman Forecasts

I have to wonder what Goldman Sachs is pushing on the investment front these days.

After all, the Goldman folks are re-forecasting a 3.5% slump in the forth quarter and 2% in the first quarter of 2009. That is a revision of 2% and 1%, respectively, from their previous estimates. All this ‘fab’ news from the folks who forecast $200 oil.

Call me cynical, but who benefits by the bad news? I think that this may be part of a play to depress stock prices to set large investors in the institutional sector so they can come off the sidelines at bargain basement prices.

To be frank, there is enough bad economic news to go around these days. If anyone wants to depress people, just keep pushing another stimulus package and endless corporate bailouts that we cannot afford. In the case of the Big Three, they had best wise up because the US cannot support them indefinitely and perhaps a merger (at best) or bankruptcy (at worst) is not out of the question.

I won’t be depressed just because the oracles at GS said so – but if the bailout-a-thon on Capitol Hill continues, I may just be a tad bummed.

Goldman Forecasts Deepest Recession Since Reagan Era – Bloomberg.com