The “Double-Dip” Scenario

Lately there have been an increasing number of people citing the possibility of a “double-dip” recession.  Much of this scenario is predicated upon the belief that as government stimulus spending fades, so too will economic activity.

This March 5 article from summarizes some of the opinions regarding the double-dip reasoning and possibilities.

I find these worries about a “double-dip” recession interesting for many reasons.  Perhaps chief among these reasons is that even among those who think a “double-dip” recession is likely, these people don’t seem to believe that any further economic weakness will be worse than that which we experienced during the trough set in late ’08-early ’09.

I’m not sure for the reasoning behind this belief; and I have seen none offered.  However, per my previous posts I don’t believe this is a logical conclusion.

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SPX at 1138.70 as this post is written