Every company has been bracing for the fiscal cliff in their own ways. Some have been delaying capital expenditures until uncertainty clears up, while others have been dumping cash on their shareholders in the forms of special or accelerated dividends.
By Kurt Brouwer: If you have been reading Fundmastery Blog for a while, it should be no surprise to you that economic growth is slowing. Now, Goldman Sachs (GS) has finally released a report that states the obvious. It’s really a question of how low does it go. Do we just muddle along with slow growth or do we sink into another recession?
Goldman Sachs has cut its first quarter GDP estimate to -1.9%. The firm had previously expected a Q1 GDP decline of -1.1%. On Twitter, Reuters' Jamie McGeever noted that excluding the 2008-2009 crash, this would be the largest quarterly GDP contraction in 23 years.
Over the past month there has been a sudden shift in the public's attention to the debt ceiling debate and away from the government shutdown, which since it did not result in the Armageddon many had predicted (same as the sequester) has been promptly forgotten.
(Reuters) - While Wall Street slashes pay and freezes cash awards, Goldman Sachs Group's top five executives may reap special bonuses of $10.5 million apiece if the firm hits historically easy profit targets over the next two years.