Tuesday, September 21, 2010

Almost time for Bernanke to stimulate his banker-buddies again?

This just in: The recession that started in December 2007 ended in June 2009, according to the official arbiter of the U.S. business cycle.
[...]
For the Business Cycle Dating Committee of the National Bureau of Economic Research (NBER), designating the trough month for the recession means just one thing: “Any future downturn of the economy would be a new recession,” not a continuation of the old one, according to yesterday’s press release.

To Baum's credit, she greeted this report with derision.

Lakshman Achuthan, managing director of the Economic Cycle Research Institute, appeared on CBS Evening News the day the report was released, and said that an economic recovery is analogous to being in the recovery room after surgery, and that there's still pain, and that healing has just begun. He also said that the recession which supposedly ended last year was typical, and that it will take almost a decade to get unemployment levels down to a normal level.

It seems to have been calculated to give us the impression that the Obama/Bernanke package stimulus had produced a happy ending for someone that really matters, and that now the jobs (mainly janitorial) will come along too. So, "if" there is "another recession," they'll get together and do it again.