Uncle Ben says the recession is "very likely over" yesterday:
Even though from a technical perspective the recession is very likely over at this point, it is still going to feel like a very weak economy for some time as many people still find their job security and their employment status is not what they wish it was.
Yeah, it sounds better in the headlines than when you quote the whole sentence and watching the video gives you even less confidence. Speaking of confidence – I reminded members yesterday that there is no economic forecaster we should have less confidence in that Ben Bernanke:
- July 2005: "There was no housing bubble and housing prices are supported by the strength of the economy."
- Nov 2006: "The motor vehicle sector is already showing signs of strengthening" and "The rate of decline in new home construction should slow as inventory is worked off."
- Feb 2007: "We expect moderate growth going forward. There is not much indication that sub-prime mortgage issues have spread into the broader mortgage market."
- July 2007: "Home sales should ultimately be supported by growth in income and employment… The global economy continues to be strong. Overall the US economy is likely to expand at a moderate pace over the second half of 2007, with growth strengthening a bit in 2008."
$9,000,000,000,0000 in bailout spending later, Mr. Bernanke is now telling us the recession is LIKELY over and that’s good enough for our man Cramer to tell his sheeple: "Sentiment is so negative right now it’s out of synch with reality.” This clip is worth watching just to hear the way Cramer sneers the phrase "Nobel Prize-winning economist" as if that title, by itself, means you should dismiss Joseph Stiglitz out of hand as he warns that current bank problems are bigger than pre-Lehman. Cramer calls Stiglitz’s article: "So stupid, wrong and anti-empirical that it’s just downright silly that it doesn’t even dignify the use of video-tape or digital or whatever they do now." I know this sentence makes no sense but it is an exact quote.
Jim does manage to plug his new book during this tirade against the man who has been working with the EU and other top economists to change the way GDP is measured to focus on actual improvements in the lives of the citizenry rather than just the corporations. GDP has long been an inaccurate measure…