"The U.S. economy is so bad that the chance of avoiding a double dip back into recession may actually be pretty good." http://www.bloomberg.com/news/2010-...relapse-as-u-s-data-can-t-get-much-worse.html Must be comedy night in the post production room at Bloomberg?
"said Ethan Harris, head of developed markets economics research at BofA Merrill Lynch Global Research in New York." No wonder BofA has so many problems. They hire idiots like this.
I suppose he cannot say this... <object width="480" height="385"><param name="movie" value="http://www.youtube.com/v/rcFwAUfxZLA?fs=1&hl=en_US"></param><param name="allowFullScreen" value="true"></param><param name="allowscriptaccess" value="always"></param><embed src="http://www.youtube.com/v/rcFwAUfxZLA?fs=1&hl=en_US" type="application/x-shockwave-flash" allowscriptaccess="always" allowfullscreen="true" width="480" height="385"></embed></object>
Enough talk about a double dip recession, reason being is that the economy is still in a long, long recession. There is no such thing as a double dip recession because of the fact that were still in the first original recession from the past 2 years. I know some may think how can this possibily be with GDP moving higher to the plus side the past few quarters, well quite simple, GDP has been artificially propped up due to stimulus over the past 18 months. No need to constantly talk about a double dip when were still in the "single" dip recession.
Very few pick up on that salient point. The media loves to hammer its viewers with loaded questions and unfounded assertions. The "double dip" has always been a ruse to imply recovery, it's some form of bullshit that Orwell must have scripted 60+ years ago.
Base unemployment in several European countries was above 10 % for quite a while, yet stock markets and other affiliated markets happened to go through the full cycles of recovery and recession. I think the US of A has to admit that there will be no return to the good, old, golden times. Be happy if you have a base unemployment rate of 8-10 % ( although the true numbers are probably much worse ). Ben Bernanke is sending the wrong signals with QE II "light". Officially GDP has grown 3.7 % in Q1 2010, 1.6 % in Q2 2010. What are his achievements ? At least, US banks have bought some time. They have actually strenghtened their balance sheets, deleveraged and recapitalized. House prices have stabilzed from FALLING ( at least according to the S&P/Case Shiller House Home Price Index ). I think the perception of real estate gurus is that there is some stabilzation going on. International commercial real estate companies are looking into quality deals - at least that´s what a Bloomberg story is about ( http://noir.bloomberg.com/apps/news?pid=newsarchive&sid=aze.ASffYzIM ). BUT : Bernanke is fighting with old methods on the unemployment front and suggests failing available credit flow to businesses is halting economic expansion. This is not the main problem. The main problem is TRUST into the economic expansion. Media outlets are eager to emphasize HOW BAD, really, really, really bad the overall economy is. Only thing I see, is how BAD and UNPROFESSIONALLY media outlets ( and yes, I include blogs nowadays, too ) are reporting about the economic situation. I can´t read and hear anymore the double dip, tripple dip, quadrupple dip bullsh1t !
+1 People like to speculate and guess at what the economy will look like in a year, 5 yrs, etc. but the simple fact of the matter is that nobody has a clue. Every single talking head on TV and douchebag writer who tries to predict where the market will go or double dip this or that is just white noise to me.