The Recession is in session people!!!

Although they still have yet to admit it, I'm thoroughly convinced that the U.S. economy is now in a recession. We have yet to see the jobless and inflation data, but things aren't looking good at all. And now the Fed is scrambling to make adjustments. The problem is, the economy is like a huge oil tanker, making adjustments now will only affect it's positioning miles ahead from now.

Yessir, Captain Bernanke f'ed up. He hit reef and the resulting oil slick will soon be killing the cute, innocent seals.

And now he's asking Congress and Little Bush to bail him out by offering tax cuts and injecting money to save the financial institutions who are being hit hard by the spillover from the subprime mortgage fiasco.

So what to do now. I'm a peon so my opinion on the subject doesn't have any clout, but I do believe that we should not focus on what happened, but concentrate all of our efforts on the problem at hand and how to fix it. Meaning, help the people who were told they could afford their subprime mortgages when in actuality they couldn't. It's their blood, sweat and tears that made this country what it is, don't punish them for being tricked.

Again, the Economy is going to go into a recession, it's inevitable. But we still can prevent this recession from being the largest in U.S. history and quite possibly a 2nd Great Depression. Yes I've said it, DEPRESSION. It scares me to say it, just like a hyena saying Mufasa, but you have to admit it's not a complete impossibility!

With this in mind, I reluctantly admit that I am thoroughly EXCITED.* History has shown that after the worst recessions that the U.S. Economy has faced, the market has responded with the best bull-markets soon after. I think camistocks has put it best in his CAPS blog. I highly suggest one to read it for some consolation to this economic disgust.

*According to past data, a good indicator of when the economy is recovering from a recession is the Unemployment Rate. As rates go up, the market goes down and vice versa. According to NorthernTrust.com, the average S&P 500 decline was about 20% with each U.S. recession, lasting about 6-9 months on average.