Even the happytalk, "Green Shoots" economists are dialing it back now......

[marmar]

By Timothy R. Homan and Shobhana Chandra


Aug. 26 (Bloomberg) -- Economists who projected the U.S. recovery would gain speed in the second half of the year are now scaling back those forecasts as the outlook for jobs and business investment dims.

“We have to be realistic and acknowledge that the economic data have been weaker than we thought,” said Joseph LaVorgna, chief U.S. economist at Deutsche Bank Securities Inc. in New York. “We’re more concerned about the near-term risk to growth than the longer-term.”

LaVorgna yesterday slashed his estimate for growth this quarter to a 2 percent annual pace. As recently as two weeks ago, he projected 4.6 percent. Stephen Stanley, chief economist at Pierpont Securities LLC in Stamford, Connecticut, now estimates a 2.3 percent rate of expansion, down from a June forecast of 4.1 percent.

The downgrades are coming as Federal Reserve Chairman Ben S. Bernanke prepares to address central bankers from around the world at a symposium tomorrow in Jackson Hole, Wyoming. After cutting the benchmark interest rate to near zero, there may be little else policy makers can do to spur growth other than bolster sentiment, Stanley and LaVorgna said. ..........(more)

The complete piece is at: http://noir.bloomberg.com/apps/news?pid=20601087&sid=aOpaZOFDDVTs&pos=4

[AndyA]

1. Obama has a problem. He's going to need to identify a solution and

enact it quickly. We need leadership out of him now, like we haven't seen so far during his presidency.

[msongs]

2. maybe he can survey the troops and their families for permission to lead lol nt

[Skittles]

3. good luck with that