Everyone makes mistakes. I have made many (ex. I thought that a double dip recession would start in 2010 and I did not think the market would ever hit 1300 again back in 2009). I just wish that ECRI would have admitted that they were a little late in calling the last recession. I don’t agree that there was a unique opportunity to avoid recession and Lehman in early 2008. I wish they would admit that they blew the housing market call in 2007. I wish they would stop using selective passages to market their past track record (as Mish has chronicled well a few times).
That being said, I admit that I was wrong back in July 2009 and ECRI was right (their call was made on April 30, 2009), when they were among the biggest bulls on the economy and they correctly stated that "We'll definitely see the end of this recession this summer."
Now that past issues are out of the way, let’s focus on 2010. ECRI was once again right in their call that the economy would not double dip, despite a huge drop in the publicly disclosed WLI Index. (Once again, I thought we would double dip, but I was wrong).
Now, as of September 2011, ECRI has come out with their “recession is inevitable” call. Now that the stock market has rallied big time since early October, people are getting a little nasty with ECRI as this recent CNBC interview demonstrates. The fact that ECRI's call is coming in the face of a sharp stock market rally (as was also the case in 2001 and 2008) and is being attacked by many, gives me further confidence that they are right.
It is possible that their call is one again late, as GDP was very slow in Q1 and Q2 2011, and with further revisions, it is possible that a recession has already started.
As far as I know, the consensus has never once predicted a recession. The Steve Liesmans and mainstream economists of the world will never tell you about one until it is well established.