Double Dip .... what's up?
m&m has been a bit quite for a while and now we are going to bury this in the summer hole.
Double dip Recession
You can run a search on "double dip" here on m&m using this link. What you will find is that I and we at m&m always believed that we are heading for a double dip recession. It more and more looks like we were, unfortunately, right.
The main reason to believe a double dip recession would be unavoidable is (was) based on the figures and an outlook to the future. I talked about the certainty of a recession in 2007 because it is what happens. After a boom comes a recession - as certain is few things in life.
When we were heading into the recession in late 2007 / 2008 we slowly understood the immense size of the debt build up. Well, we had been warned of the trillions piling up for years - especially in the US and in Britain. And there was the deluded, unchecked spending sprees in places from Ireland to Greece - crash landing a deceived population.
With such large debt everywhere and governments trying to cushion the harsh landing on borrowed money and time - it became clear that we will not recover easily and that this softening the blow was the start for the double dip.
Sure, the double-dip will not be the same everywhere. Some larger countries and economies like Germany and France will be hit less, though, no one is out of the woods on this.