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Recession? You're Kidding!!

Recs

3

September 23, 2008 – Comments (1)

So... news headlines tell me Bernanke's saying that without this bailout, we're in for... a recession!

Wait... huh?

Ummmm... I'm pretty sure most of us have been bracing for the fact that we're already in what feels like a recession, and one that could very well become a worse recession, certainly much worse than that mini-recession (practice!) we had last time around, which didn't hit all citizens in the gut like this one threatens to do. (Trust me, I had plenty of experience losing jobs/trying to find jobs in the post-dot-com bust recession, as did many people I know, but I also knew people who were relatively unscathed other than hits to their stocks ("Kozmo.com, what a great idea!") and 401(K)s.) 

OK, now here's another thought. Recession -- that is a normal part of the business cycle, if I'm not mistaken. Nobody particularly likes it or enjoys it, but it's natural. What, am I insane to think that? Did something change, has somebody outlawed recessions? (Not surprising, maybe, with all the sort of socialist type stuff going on, I guess. And come to think of it, I've long thought the housing bubble was kind of a soft landing strategy from the last recession, there was an awful lot of, "At least the housing market's doing great!" talk back then.) So they think they can engineer it so that we don't have an ugly recession? I'm worried all that's going to be accomplished is setting ourselves up for a really slow, painful, ugly decade by trying to tinker our way into a "soft landing." 

Maybe I'm missing something here. Or maybe they don't want to use the dread "d" word since apparently the use of negative language has also been frowned upon in the mainstream media: http://www.clusterstock.com/2008/9/no-panic-apocalypse-free-fall-crash-pandemonium-or-meltdown-

However, look on the bright side, at least we won't get gouged on the prices of rotten eggs and tomatoes we can lob at our politicians when they muck this all up: http://biz.yahoo.com/ap/080923/food_price_fixing.html 

1 Comments – Post Your Own

#1) On September 23, 2008 at 4:03 PM, etamar2 (45.99) wrote:

Hi Logan,

I'm not sure it's tomatoes to the politicians' faces that will help here.  Not to reduce anything to that scale, but some basic psychology is really going on.  I think the point of the central banks around the world, heads of states etc' is much simpler than "telling the truth" or not.

It's all about drawing a line.  It seems everybody understands that if there is a formal declaration of a recession, then people will do irrational things (drawing out their savings, pulling out of 401k plans in the US and other retirement plans around the world and so on).

The idea is to protect the layman.  It is not a bad thing IMHO.  It is about making sure people do not step on each other trying to flee, causing more damage to the American economy. 

Also, it's about protecting the assets of main street from the international sharks that would want to buy a cheap bite out of the huge american economy, which is bound to rebound, among other things.

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