Wednesday, October 28, 2009

Goldman Cuts US GDP 3rd Quarter Outlook to 2.7% Growth

Today Jan Hatzius of Goldman Sachs released a short client note downgrading their outlook on U.S. GDP growth for the third quarter from 3.0% to 2.7%. With the official numbers scheduled to be released tomorrow, the 3.0% number has been priced into the market in anticipation of the release. If the official numbers fall in line with Goldman's prediction, things could get ugly tomorrow. Did their buddies at the Fed tip them off? Or maybe they are purposely disseminating flawed information to take advantage of other investors. It will be interesting to see what happens.
Posted by Mike H at 2:40 PM

2 comments:

  1. Mike HOctober 29, 2009 at 6:37 AM

    Well, the real number came in at +3.5%. Very interesting. Wonder why Goldman was so far off on this one? Very interesting that they released this on the day before the numbers came out as well.

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  2. AnonymousOctober 29, 2009 at 8:41 PM

    After today's biggest 1 day rally since July (which also ends the 4 day sell seen only for a 2nd time since mark) I think Government Sachs was just managing expectations. If you are setup on a blind date and and the buddies who set this up lie to you and say the chick is a 5 when in reality she is a 7. So, when you see her you will be more impressed (slightly higher than a 7). The reverse reaction would happen if they lied and said she was a 9.5/10

    Thanks,
    Matty Baby

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