• Markets
• Economy
• Federal Reserve
• Housing
• Energy
• Digital Media

Arthur Laffer: US is in Recession Now

I almost fell off of my chair yesterday  when I heard Art Laffer on Kudlow say those words: "The US is in a recession now."

That's quite a reversal. As a trader, I am quick to give credit to those people who recognize when they are wrong and reverse themselves. I suspect Laffer is trying to distant himself from some of the more hallucinatory and reality-disconnected pundits he shares the camera with on K&Co..

For the record, I don't think we are in the classic NABE definition of recession -- yet. Elsewhere, the Leading Economic Indicators declined for the 3rd straight month, and the 5th month in 7.

click for video

>

Of course, Laffer is a political creature above all else, and is now blaming the recession on Bernanke. This is setting up the talking points for the election. "If I was in the White House, I would start pointing the finger at Bernanke"

And, he disagrees with Kudlow, saying it won't be difficult to run as a Republican in a recession.

So much for the politics of personal responsibility . . .

>

UPDATE: January 18, 2008 11:16am

NOTE:  Laffer calling a recession is actually the video before this, which is not posted on CNBC --but I TIVO'd it, and can upload it over the weekend. 

>

Source:
Leading Indicators Decline 0.2%
DEBORAH LYNN BLUMBERG
WSJ, January 18, 2008 10:07 a.m.
http://online.wsj.com/article/SB120066859773200703.html

Friday, January 18, 2008 | 11:02 AM | Permalink | Comments (59) | TrackBack (0)
add to de.li.cious | digg this! | add to technorati | email this post

Comments

That whole group sounds like they shared a plate of magic mushrooms before the show.

Blaming da Fed for a bunch of moronic bankers? The question I want answered is where or where were the regulators? Time for another Glass Steagal reg and a breakup of the ratings cartel.
Laffer's 1 + 1=3 only works at inflection points.
Sorry for venting.

Posted by: Ross | Jan 18, 2008 11:14:10 AM