I just listened to the chief U.S. economist for Barclay’s Capital. He is predicting the S&P, which is now 1244 will drift down to 1150 by next summer but end the year at 1330, which would be a dramatic turnaround indeed.
Earlier this morning, I listened to the chief European economist for Barclays in Europe saying they do not expect a “bazooka” approach to calming their financial crisis. Without that, I think Europe has no chance of resolving the crisis.
Although he didn’t say it, maybe the U.S. economist expects the S&P to drop almost a thousand points because the Europeans will not take a bazooka approach??