Economic Pussyfooting

Kids, I never lie to you, which is why I am going to cut through all the media hoopla and tell you upfront: the recession has begun.

Since the first of the year, companies have been posting their losses as the house boom of the last few years has begun to bust. Most bumminest mac Federal Reserve Chairman Ben Bernanke has worked with the administration on their emergency rescue package centered on tax rebates and business tax cuts in order to halt the economic trouble. Increases in unemployment benefits and food stamps have also been bandied about.

The alarming part is the elephant is already in the room and nobody wants to admit it. Sorry, but you're not going to keep a recession at bay through denial - say it or not, here it is. When the White House says "We are not forecasting a recession...clearly there is a slowdown," you're just hearing the spin. If you don't like that, how about noting "appreciable downside risks to growth remain". Listen, when you hear the opening bars of the song, make no mistake that the crescendo will follow.

Just look at the five most recent headlines in the business section:

Dow drops 465 then gains most of it back

Fed cuts interest rate 3/4 of a point

Bank of America, Wachovia profits plunge

UAL trims 4Q loss to $53M; hurt by fuel

Ambac posts $3.26 billion quarterly loss

None of those are good. That rainy day you were saving for has arrived, and don't let them tell you it's still sunny.