The clouds of gloom hanging over the US, Europe and Japan darkened Thursday with stark outlooks from both influential investment bank Goldman Sachs and the Organisation of Economic Co-Operation and Development (OECD).
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Chinese economists said the U.S. credit rating downgrade by Standard & Poor's poses great risk to financial markets and expect it to prompt China, the world's biggest holder of U.S. Treasuries, to accelerate the diversification of its holdings.*
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"We can put our finger on the problems, and they're temporary, I think," says one economist. "Oil prices were a blow. You can see that in the consumer spending numbers in Q1, and prices are coming back down."
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