THE BASIS POINT

Buffett vs. Bernanke on Recession

Last week, Fed Chairman Ben Bernanke told Congress that it’s almost impossible to predict a recession. This week, Berkshire Hathaway chief said that “by any commonsense definition, we are in a recession.”

Who’s right? It’s hard to argue against Buffett’s plainspoken statement … and the economic data. And with some new analysis that is perhaps more accurate than the NBER data. It’s called the Consumer Spendables Indicator from TrimTabs, an investment research firm in Santa Rosa, CA.