Time to Relax

Live those dreams
Scheme those schemes
Got to hit me, hit me
Hit me with those laser beams
--Frankie Goes to Hollywood

Yesterday the National Bureau of Economic Research (NBER) declared that the recession is over. In fact they contend that it ended more than a year ago, in June, 2009.

Whew, we can relax now. Glad that's over...

While people often take such proclamations on faith, it may be a tough sell this time around. There is plenty of evidence to suggest that economic conditions have not improved much and in fact may be worsening.

The timing of the announcement is interesting--one day ahead of the Fed's meeting.

Moreover, for politicians looking to throw as many goodies to SIGs ahead of the fall elections as possible, a question some inquiring minds are likely to ask is why stimulate the economy if we're not in recession?

Competing bureaucratic mindsets, it seems...