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.
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.
Leading Indicators Decline 0.2%
DEBORAH LYNN BLUMBERG
WSJ, January 18, 2008 10:07 a.m.