From the Associated Press:
"The panic has subsided but the housing market has not hit bottom yet. It will not hit bottom until winter. Housing prices won't hit bottom until next summer and the losses won't peak for another two years, until 2009," said [S&P chief economist] David Wyss at a press briefing in Mumbai. "We are not halfway through this crisis yet." S&P forecasts the U.S. economy to grow 2 percent in 2007 and also in 2008, while the global economy is expected to grow 3.6 percent and 3.5 percent in the same period.
Note that S&P is not predicting a recession at this point.