Suddenly — really just in the last few weeks — people have starting
talking seriously about a possible recession. And it's not just
economists who seem worried. Goldman Sachs recently reported that the
confidence of chief executives at major corporations has plunged; a
clear majority of C.E.O.'s now say that conditions in the world
economy, and the U.S. economy in particular, are worsening rather than
improving.
On what basis are these unnamed CEO's now predicting a recession? They give no compelling reason apart from the "a chill is in the air". It seems to me that Goldman Sachs is using some made up reasons to cry wolf in order to pressure Bernanke to go easy on the interest rates. I suspect that their real agenda is to keep the monetary spigot open.
-raghu.
