Here’s an interesting piece about the shape of recessions, which come in all kind of shapes: the sharp V, the more gradual U and the double-dip W, among others.
The author sees a W, with the stimulus package making the first recession shallow, creating the illusion of a recovery. Once the stimulus wears off, the county will hit a second, deeper recession, plus having high budget deficits and inflation.
PS. I fixed the link from earlier.
2 Comments
Are we in that second dip now? Should we forget that a stimulus package of tax rebates were already given earlier this year.
Linky no worky, btw.
No Joe, we are still in the first dip. Unfortunately this one could be a series of dips; not just two. So many years of regulatory failure will take at least two years to fix. What I fear is that the American people will dislike the medicine and sobriety too much and will seek ‘easy solutions’ that will be offered in 2010.