Economists at Morgan Stanley predicted the U.S. economy could go into a mild recession in 2008, citing credit conditions, a slump in business capital spending and a slowdown in global growth. "A mild U.S. recession is now likely, with no growth for the year ahead," writes Richard Berner in a note to clients. "Financial conditions are tighter, the weakness is broadening into capital spending, and global growth is slowing." Economists at Merrill Lynch also write that a recession probability indicator is flashing a 100% chance of a U.S. recession in the next 12 months, up from 75% chance in October. But analysts at other firms, such as UBS and Wells Fargo, say there won't be a recession.