Merrill Lynch , Goldman Sachs , UN all warn of impending " reality check " for the USA economy.

[kangarooistan]

I notice more good news every day

I knew they were in real trouble when they started pouring hundreds
of billions
into the banks , an act of desperation , The USA is like one giant
Enron

Nothing can save the USA or Israel now

kanga
=====

Banks, UN warn of impending recession

Posted Thu Jan 10, 2008 7:37am AEDT

Another big investment company in the US is warning of an impending
recession in the American economy, while the United Nations (UN) has
warned US economic problems could trigger a world recession.

Goldman Sachs says the American housing and credit woes suggest the US
economy "is falling into recession".

In a research note to clients the investment giant says it expects
economic activity to contract modestly this year, followed by a
gradual recovery next year - and it says the weakening economy will
force the Federal Reserve to lower interest rates to 2.5 per cent by
the third quarter.

Earlier this week Merrill Lynch said a recession was a present day
reality for the world's biggest economy.

UN warnings

Meanwhile, the United Nations has warned of "clear and present
dangers" of the world economy coming to a near standstill this year
because of US housing and credit problems and the weak dollar.

In an annual report, the world body forecast global economic growth at
3.4 per cent for 2008, only slightly lower than last year, but said
that under a pessimistic scenario, if US difficulties were acute, it
could be just 1.6 per cent.

The bursting of a housing bubble in the United States last year and a
crisis over subprime mortgages has caused uncertainty across financial
markets around the world, said the World Economic Situation and
Prospects 2008.

The US problems "could trigger a worldwide recession and a disorderly
adjustment of global imbalances," the report said.

"The recent global financial turmoil has heightened these risks and
shown them to be clear and present dangers."

A senior UN official, Jomo Kwame Sundaram, says there is about a 50
per cent chance of recession.

"We are all hoping very much that it can be slowed down and that there
will a number of adjustments, which can be moderate adjustments,
rather than meltdown situation, which could have catastrophic and
unpredictable consequences," he said.

- ABC/Reuters