Goldman: After Six Months, We Can Safely Say This Is No V-Shaped Recovery
Courtesy of Joe Weisenthal at Clusterstock/Business Insider
Last Friday’s lights-out GDP report has revived hopes among bulls that we still might get the V-shaped recovery everyone was predicting last summer.
After a string of disappointing jobs and housing numbers in the fall, it seemed the chance of that had been fading.
But Goldman Sachs economist Jan Hatzius has a grim message: It’s not happening.
In a weekly note, he slams the idea that a sharp fall must be followed by a sharp recovery (the argument put forth by the likes of interest rate guru James Grant).
Hatzius’s argument: Unlike in past recessions, which were caused by Fed tightening, this time the Fed is super loose, and we’ll experience tightening while the economy recovers.
See the whole argument >
See Also:
Historically, Huge Inventory Boosts Like In Q4 Have Ended Very Badly
Rosenberg: Here’s Four Reasons Why That GDP Number Was A Joke
