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August 13, 2008

The Recession of 2008?

In the first sentence, today's column blithely states that we're in a recession.

It might not feel like it, but so far the national recession of 2008 has left Maryland relatively unscathed. As tough as times are in housing, stores, publishing and finance, this state has avoided the blunt trauma visited upon many regions and the nation as a whole.

Having spent 800 words last week arguing why this is a recession even though the "official" judges haven't declared one yet, I suppose I felt I didn't need to repeat the arguments today. Several readers thought I was trying to mislead by not pointing out that the Business Cycle Dating Committee has yet to declare a recession. This email is typical:

Mr Hancock, You are an intelligent man, and I know that you truly understand what constitutes a 'recession'. Sure we have slowed down and there are many problems in particular in the financial area. But, as you well know, a recession is two consecutive quarters with a contraction in the GDP. And we have not had even one yet. Yet in todays business section, you again state on the front page "It might not feel like it, but so far the national recession of 2008....." as if it is a fact, which it is not.

So if you know it,,,and you and your paper continue to push this absolute LIE upon the people of Maryland, what can any observer conclude? That you are liberals, trying to help your Democratic candidates in the upcoming election, as is done continuously in the news section of your Democratic paper every day. by perpetuating lies to scare people.

I think he's right. Feels like a rececssion to me, but the judges haven't ruled yet. I should have ponted this out. (PS. The reader is wrong when he says a recession must be two consecutive quarters of negative GDP. For more, see last week's column here.)

Posted by Jay Hancock at 3:31 PM | | Comments (1)
        

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If it walks like a duck....

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About Jay Hancock
Jay Hancock has been a financial columnist for The Baltimore Sun since 2001. He has also been The Baltimore Sun's diplomatic correspondent in Washington and its chief economics writer. Before moving to Baltimore in 1994 he worked for The Virginian-Pilot of Norfolk and The Daily Press of Newport News.

His columns appear Tuesdays and Sundays.
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