The Economists Have Finally Reached a Consenus That We Are in a Recession But I Know That Already!

Finally! The WSJ has coped to a recession (It’s about time the paper gets its nose out of the sky! I regularly shop at Saks, Neiman Marcus and Bloomingdales and the week before Christmas I was the only one in Jimmy Choo store (The author is also an economist!)). And like I have said even before Bernanke’s hire, I have openly questioned why an academic without any real-world job experience would be appointed to the Fed Chief position given that his predecessor held jobs outside of the Ivory Tower? The main problem is that the current subprime lending crisis did not follow the economic models and he is slow to respond. Bernanke cut interest rates but they have very little impact upon stimulating because unemployment is still higher and people are losing their house, their primary financial asset. Personally, I am purchasing savings bond to protect my assets from inflation. The remaining 2006 ARM will reset throughout this year but the real financial recovery will take at least another year given that America will have to adapt to another administration.