“Dangerously Close” to a Recession
Morgan Stanley warns that our markets are teetering on the verge of a recession, but also says that this year will not be as rough as 2008. The economics team at Morgan Stanley released these forecasts after slashing their global growth outlook.
Brace yourself for 6-12 more months of a tough economy because the statement by Morgan Stanley also says that the economy may hover “dangerously close” to a recession for this period of time. According to the report the main reason for the economic troubles around the world is policy errors made by politicians in the US and in Europe.
On the other hand the positive news coming from Morgan Stanley is that 2011’s economy will not be as bad as 2008’s economy. Mostly we can thank the healthier balance sheets of banks, corporations, and households for keeping the economy from reaching the point it did in 2008.
Around the world there are worries about the possibility of another recession, and Morgan Stanley says that we are “dangerously close” to one. With the memories of the 2008 economy still fresh many fear a repeat in 2011. Although we are seeing similar trouble in our economy as we did in 2008, economists at Morgan Stanley assure us that 2011 will not be as tough as 2008 was.