| In terms of the financial situation with the global | | | | spiral, the reality is that without a more serious |
| economy, the optimist sees the half full glass as | | | | change in financial methodology and oversight, the |
| the end of an almost 2-year long recession. The | | | | economy will continue to bounce until the |
| pessimist sees it as half full and evaporating as | | | | inevitable roll away occurs. |
| the months pass. Somewhere in the middle of the | | | | When, Not If There Is A Double Dip Recession |
| two is the reality that using Wall Street as the | | | | When the double dip occurs, it will likely be the |
| barometer for the health of the economy is | | | | result of the missing piece of the economic puzzle: |
| neither half full, nor half empty. Even casual | | | | loss of consumer confidence. The first "dip" began |
| observers of the financial status of investments | | | | with shock and awe at how easily the financial |
| at present see it as "dead cat bounce", meaning if | | | | investment world could be savaged by misguided |
| you toss a cat from a high enough building, it will | | | | investment decisions and serious misjudgments. |
| bounce. This is an old Great Depression analogy | | | | The second dip will occur as a result of stagnant |
| that clearly defined the phases of a deep | | | | or non-existent consumerism. Fear of loss of |
| regressive economic depression. The question is | | | | financial stability affects consumers. But, it affects |
| whether the global economy is in recession or in a | | | | business through "deflation". The longer consumers |
| regressive "dead cat bounce". | | | | hold off making purchases, the more businesses |
| Could We See A Double Dip Recession? | | | | will suffer deflation. The double dip begins when |
| We can and will see a double dip recession. This | | | | businesses insist upon status quo pricing while the |
| too is a clear observation. It's predicated upon an | | | | consumer market fairly vanishes before their |
| economy that is "bouncing" with each new | | | | eyes. People on Main Street will not invest in Wall |
| statistic that proves negative. As an example, | | | | Street until it can prove itself worthy of their |
| though the present US stimulus package may | | | | attention. |
| have seemed to band-aid a downward economic | | | | |