When do we say the R word?
Bear Stearns has folded. The Fed is cutting interests rates. The number of unsold houses on the market is steadily climbing.
At what point should the media dub the current economic slump a recession? Do we sit back and wait until Bernanke, chairman of the Fed, says the R word? Or do we solicit a label from financial analysts?
Bloomberg has gone forth and christened the current climate indicative of a recession.
What if the self fulfilling prophecy is true? Dan Ariely of the MIT economics department writes that talking about the possibility of a recession could very well lead to one. He suggests that we just talk about sex instead. I think his logic is sound up until that point. More often than not, the reporting of news will cause other news to happen.
