A top Goldman Sachs strategist has provided the firm's hedge fund clients with a particularly gloomy economic outlook and suggestions for how these traders can take advantage of the financial crisis in Europe.

In a 54-page report sent to hundreds of Goldman's institutional clients dated August 16, Alan Brazil - a Goldman strategist who sits on the firm's trading desk - argued that as much as $1 trillion in capital may be needed to shore up European banks; that small businesses in the US, a past driver of job production, are still languishing; and that China's growth may not be sustainable.