Goldman thought the economy was nearly recession-proof.

[denem]

Coronavirus crash is a true ‘Black Swan’. Goldman thought the economy was nearly recession-proof.

Goldman Sachs’ economists declared the U.S. economy all but recession-proof at the dawning of 2020, but now it appears a coronavirus-induced recession may have begun just a few months later.

The analysis didn’t account for a “Black Swan,” a term for an improbable and unforeseen event. Instead, it explored the idea of a “Great Moderation,” which is characterized by low volatility, sustainable growth and muted inflation.

“Overall, the changes underlying the Great Moderation appear intact, and we see the economy as structurally less recession-prone today,” Goldman economists Jan Hatzius and David Mericle wrote.

The economy, they argued, would settle gently after 11 years of growth.

https://www.cnbc.com/2020/03/14/goldman-thought-economy-was-recession-proof-in-january---it-wasnt.html

I wonder whether Goldman securitized their 'Great Moderation', and sold it off to the muppets.