News that the Bank of England is forecasting a less severe economic downturn for the UK, although a prolonged period of recovery, will be welcomed by investors. However, why is it that economic forecasters in the UK always seem to be over pessimistic in the early days of an economic downturn? This over pessimism certainly has an impact on investor confidence and in many ways pessimism can lead to more pessimism, i.e. a self-fulfilling prophecy. Who regulates the likes of the Bank of England and other "official" economic forecasters?