Investment-blog.net: Stocks, Emerging markets, Bonds, Currencies and Commodities

By John Letzing
SAN FRANCISCO (MarketWatch) — A Citigroup analyst late Monday issued a dour outlook for the U.S. economy, writing in a note to clients that the recent crisis has “broken the bounds of any previous, merely cyclical event.” Citigroup analyst Steven Wieting wrote that tightening financial conditions and weakening economic activity are expected to continue, and suggest “a more severe recession.” Wieting wrote that even if “traction is eventually regained,” he is nonetheless expecting contraction in the U.S. GDP over the four quarters ending in the second quarter of 2009. “We believe large company profits will now fall 27% peak-to-trough, and the unemployment rate to peak above 8 1/2%,” Wieting wrote.

Did you like this? If so, please bookmark it,

about it, and subscribe to the blog RSS feed.

Possibly Related Posts:

• WW I was created by the bankers as was WW II.
• Because of our debt, we could end up left out of the recovery.
• US Financial Stocks Drop After Oppenheimer Comment On Capital Need
• Money velocity is also a part of the picture.
• Savings is not a “problem,” but a solution.

Did you like this? If so, please bookmark it, about it, and subscribe to the blog RSS feed.

Technorati Tags: Citi, Citigroup, Company Profits, Contraction, Economic Activity, Economy, Gdp, Outlook, Quarters, Recession, San Francisco, Second Quarter, Trough, Unemployment Rate