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That has led a number of private forecasters to slash estimates of second-quarter growth.
The analyst issued her forecasts late Wednesday, after bank shares tumbled following her decision a day earlier to slash estimates for Citigroup, Bank of America, JPMorgan Chase and Wachovia, the largest U.S. banks.
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Indeed, economists have been busily slashing estimates of Brazil's potential rate of growth the speed at which the economy can expand while keeping inflation in check.
Given dismal forecasts of American growth, plunging consumer confidence and slashed estimates for corporate profits, can any of the tools that are used to measure the markets validate the bulls?
To put it another way, they are exposing themselves to the risk that the analysts' estimates will prove to be too optimistic that the stock will crash the moment management issues a profits warning, causing the herd of analysts to slash their estimates.
In case of such a stalemate, a system called sequestration kicks in, which would automatically slash an estimated additional $600 billion from the Pentagon.
The Office for Budget Responsibility OBRR) said details of the government's four-year spending review, published last month, had enabled it to slash its estimate of public-sector job losses to 330,000 from 490,000.
It was forced to slash an estimated $1.55 billion from its programs.
But several analysts slashed their estimates yesterday, including one who halved his estimate to 34 cents a share, according to First Call/Thomson Financial.
In recent weeks, many forecasters have slashed their estimates of growth in the fourth quarter.
But predicting shale oil production is an inexact science; the authorities just slashed their estimates for Monterey reserves by 96%.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com