It's summer and typically the only "double-dip" most of us would like to be thinking about has to do with ice cream. Unfortunately, whispers of a "double-dip recession" have grown to a shout after warnings voiced at the G20 Summit in Toronto, Canada.
Some economists say the writing is on the wall, citing signs like last week's dismal housing report and a drop in commodity prices, while others are saying that these claims are unfounded and a second recession, unlikely.
Vote below and tell us what you think in our comments section.
Mark, fear is not *always* a contrarian indicator. Often yes; but right now smart money is full of fear. Consider bond yields have been dropping dramatically recently even as stocks were still on the rise (on thin volume at that). The bond market being a lot bigger than the stock market, it takes a lot of money to move yields down; so big money has been on an exodus from stocks for a while now. That's what's been keeping inflation in check. Also, July is the peak month for predicted new foreclosures in real estate. Lots of mortgages coming up for adjustment. Interbank lending rates are on the rise again. Besides European sovereign debt problems, also in July we're likely to see the problems in the UAE make a come-back. Plus, state and county debt problems. All of which points out to credit crunch Part II, followed by more of the same quantitative easying, yada yada, which in turn will cause a flight from bonds to metals. Doesn't look good to me.
Yes the head and shoulder are busy Playing out .
tks for the great communication and the videos just helping me alot to see where we are going here in South africa ..
keep ut up Please
Willie
With so much in the news of a possibility of a double dip, I don't think the Feds/Bernanke/Obama will allow it to happen, not atleast in $ terms as they have full control on the printing of money. They will probably try to print themselves out of trouble (or so they think they can) and ruin the value of the $ and the living standards of all Americans. However if you care to consider the double dip in terms of the gold ratio, we're already there.
I fear it will something more than recession
When the impact of the rising gasoline prices hits, this will finish a lot of people.
Bud Wilkes
THIS ENTIRE MARKET IS A ONE WHOLE BIG FRAUD SO DOW WILL GO SUB 5900 & TAKE OTHER FRAUD STOCKS & INDEXES DOWN WITH IT.
NOT TO SAY THAT THERE WILL NOT BE UP SPIKES ALONG THE WAY, BUT THE MAJOR TREND WILL BE DOWN TILL DOW HITS SUB 5900
AND YOUR WANTS PER GIVE AWAY? (LIE, BEG)?
Call it what it is...a Depression. <10% reduction in GPD. Will the second half be more severe? VP Biden tells us we will never recover the 6 million lost jobs...
THIS IS DEPRESION AND IS THE SAME ONE.
You wouldn't know we where in a recession in Arkansas. Other than a slump in real estate market. Lowes-walmarts is booming. Mall parking lots have heavy traffic. Restraunts are always busy. I don't thing a double dip is in the future.
Bernie
Greece's debt will have to be restructured---the GDP looks like it will go negative 10% over the next few years, with the austerity cut backs required by the IMF and EU. This is probably a worse situation, technically, than the Great Depresssion. Worse than what Argintina had to try to endure before it outright defaulted.
There is really no way around a write off by the creditors of Greece. So if the banks restructure Greek debt soon, they could start a recover scenario there sooner...but only in Greece.
The big problem is, what about Spain, and the other PIIGS? Will they also require a restructure? The EU is out of money, really. So only China could step in and try and save them now. Wonder what China will want from Greece---land?
Add to that the U.S. states about to cut and slash spending and jobs this year. Double dip, here we come.
Let me know when this becomes 95% negative-time to buy