On a day when the National Bureau of Economic Research says the current recession is both official and a full year old and the Federal Reserve Chairman says he's willing to cut interest rates from an already rock-bottom 1 percent, the contrarian in me expected to see at least a few folks start shouting "Buy!"
That's because during most downturns, by the time a recession is officially announced, the damage has already been done in stocks. That, mixed with possible rate cuts that are "certainly feasible," according to Ben Bernanke, should theoretically be good news for battered shares. Not this time. Here's why:
In case you missed it today, the S&P is down another 6 percent and, as Felix Salmon rightfully points out, it's not really because of the recession call, which was already obvious to any market watcher with a pulse. It's because the faltering economy is still in the process of catching up to Wall Street expectations that remain overly optimistic, even after what has been a truly awful year.