With stock markets closed today, Goldman is trying to answer a few questions for upcoming year:
- will US growth pick up to an abovetrend pace?
- how much will the European crisis - the biggest downside risk - subtract from US growth?
- will the US housing market bottom in 2012?
- will inflation be too high or too low by late 2012, relative to the Fed’s target?
- any chance of QE in new year?
In all their discussions the effect of "spillover" from Eurozone is profound for US economy.