A recession? Hmmmm, while the front page of the WSJ talked about subprime losses and how Wall St. and the rating agencies once again conspired to screw investors (by issuing high ratings to suspect CDO’s) you had to flip the page to read a small story that our trade gap narrowed in Q2 and that the economy expanded greater than previously thought for Q2 and will likley exceed most economists forecasts in Q3. As I have previously said, the subprime debacle is more to do with Wall St. fleecing investors once again than with homeowners defaulting on mortgages. Just as you saw stock anlaysts taken to the woodshed after the internet bubble broke you’ll see the boys at Moody’s and S&P take some lashes as well they should.

Sticking a positive story on the front page wouldn’t sell papers. Looks like Murdoch already has taken over the layout of the Journal.