In both cases Goldman cited reduced government stimulus spending...

[Kurt_and_Hunter]

Lost in Stagnation: Japan's Dismal Tale
Paul Krugman
Thursday 02 September 2010

. . .

As economic recovery in the United States continues to languish, some economists are warning of the increasing possibility of a "Japan-style" period of deflation — a downward spiral of low prices that can be difficult to reverse once it starts.
Behind these fears lies compelling data.

In a report released Aug. 9, Goldman Sachs lowered its growth estimate for Japan from 1.7 percent to 1.4 percent and for the United States from 2.5 percent to 1.9 percent.

In both cases Goldman cited reduced government stimulus spending as the main reason for the downgraded outlook. Other reports have shown dips in consumer spending, home sales, factory orders in both countries and, in Japan, a reduction in industrial output and an increase in the unemployment rate.

. . .

http://www.truth-out.org/lost-stagnation-japans-dismal-tale62909

[customerserviceguy]

1. Aren't they the same firm

that predicted $100 a barrel oil back in 2007, spurring speculators to drive it up, creating the inflationary spike that finally burst the bubble on the economy?

I guess they're influential, they've supplied staff for both of the last two administrations...