I almost fell off my chair when I first read this ...
"WASHINGTON (Reuters) - The U.S. economy slipped into recession in December 2007, the nation's business cycle arbiter declared on Monday ..."
Full article here - http://biz.yahoo.com/rb/081201/business_us_usa_economy_recession.html
That Monday was December 1, 2008, or 12 months too late!
On 2 December 2007, the S&P closed 1505. Last night, S&P closed 816, or just a little over half of its value 12 months ago.
If you had waited until the US Government officially declares Recession, isn't this way, way, way too late?
If I recall correctly, Buffett called for a Recession last year, and a certain local fund manager lambasted Buffett for being a lousy economist earlier this year. *grin* I guess bloggers who called US recession last year should now feel vindicated that they were right!
For future reference.
There's a screen shot in Moolah's blog where Mr Tan called Buffett a lousy economist in bold title here - http://whereiszemoola.blogspot.com/2008/04/tan-teng-boo-declares-warren-buffett-to.html
ReplyDeleteJason pointed out this statement there -
"For the record, i Capital and our managing director have repeatedly said that 2007 and 2008 will not see the US economy in a recession ..."
WOW!
And now, the US government have come out and said that the US is in recession since Dec 2007.
Backhand of course by the US government.
And yet, many bloggers have warned in late 2007 that US was heading to a recession.