Financial Trend Forecaster

Investing For The Rest Of Us: What Exactly Is a Double Dip Recession and What Are The Odds Of Having One?

Treasury Secretary Timothy Geitner thinks that the United States will not experience one, President Obama warned way back in November of 2009 that we could head into one, and some economic pundits believe we’re already in one.  Everyone seems to have their opinion as to whether our fragile economy will experience a “double dip” recession or not.

Opinions are good. They form the basis for most discussions taking place today – from economics, to politics, and beyond.  For those of us who make our livelihood giving financial advice, a well formulated opinion may well determine whether we can pay our mortgages or not.

First, let’s define a double-dip recession.  In simple terms – and according to the website Investopedia, a double dip recession occurs when gross domestic product (GDP) growth slides back to negative after a quarter or two of positive growth. A double-dip recession refers to a recession followed by a short-lived recovery, followed by another recession. Got all that? Continue reading →