CNBC host Dennis Kneale, who appears at 5 p.m. PDT and 8 p.m. EDT, etc., is taking a lot of heat from the blogosphere for proclaiming the recession over. I happen to agree with him that we’ve come out of the depths and are moving back up, and in fact I date it earlier than Kneale dpes. I say the depth was reached in February, but it had nothing to do with Obama or his inauguration. Right about the time of Puxatawny Phil’s spring-into-action on Feb. 2, the depths had reached us as the Lehman/GM shock began taking perspective. In fact, about a month later (a lagging indicator, as they all are except for us sages), the stock market started going up in fairly dramatic fashion, and consumer confidence started returning.
Lately, however, we’ve had a lot of Obama arbitrage and profit-taking from other people’s woes–investors and companies hunkering down and hoarding up on profits (or money however they can get it–think layofrfs) as a hedge against maniacal Obamaic plans to raise taxes, raise the minimum wage, rip off corporations in the name of nonexistent global warming, socialize the banking and auto industries, unionize every firm in America, and turn health care back to the dark ages when it was cheap (because nonexistent).
All that being said, my main point is that Kneale was right in calling the recession over. For the next months, or years, until Obama comes to his senses, the arbitrage and profiteering will be the logical response to illogical governmental actions. The recovery will stay on hold until then, but it’s over if we can get the government to realize it and take a two-year vacation.
Where I part with Kneale is in his choice of words when he was fighting back against bloggers who were calling for everything from his dismissal from the network to decapitation on public television. At one point, he referred to "homoerotic" bloggers who accused him of being gay (which he denies). However, that was surely the wrong word. What he meant was "homophobic," unless he was referring to bloggers who get orgasms by blogging against him. Then, that would truly be "homoerotic." Sadly, though, it may also be close to the truth.