Recession Talk....

Blanchard says the Fed should buy stocks -in addition to treasuries and MBS...during the next down turn. When will this happen? based on the chart below (from the Atl Fed) we are due for one. Everyone loves the new talk about recessions and the latest "25 year business cycles" but how soon does a US recession loom around the corner? When I was speaking in NYC a while back recession was the only topic on the table. Not so much today. Few care to discuss it, and even fewer think it will happen. Animal instincts (economic indicators) aside, we need to seriously consider the next recession, and if that means the Fed begins to buy equities we could have a new era of stability ussured in.