Double-dip Recession

A double-dip recession is when an economy goes into a recession, then recovers for only a short while before entering another recession, then finally recovering. A double-dip recession can cause problems for businesses and consumers, as they might be more reluctant to spend during the second recovery as they would still remember the market’s first “failed” attempt. Ultimately, even a double-dip recession has a point at which the economy fully recovers.


Talk of financial crisis is intensifying in the European Union, as interest rates in Spain and Italy remain at elevated levels and threaten to rise even further. This makes it almost impossible for both countries to go to the market…

For now, London is the center of the world’s attention for the next two weeks as it plays host to the 2012 Summer Olympic Games. Unfortunately, once the Olympic Torch is extinguished to signal the end of the games, everyone…

There was finally some good news on Tuesday after the latest reading from the S&P/Case-Shiller Home Price Index of 20 major metropolitan areas in the United States showed a bounce from the recent lows. In March, the housing market had…

If we split the economy into consumers and businesses, both groups are pointing to a slowdown in the economic expansion that started in 2009. Let’s start with the American consumer… Consumer confidence in the U.S. unexpectedly fell this June to…

When consumers are cautious, they tend to hold back on any major purchases such as homes, vehicles, furniture, appliances, and travel, to list a few. This will impact spending, GDP growth, and the ability of companies to expand their businesses…

As I have been saying, housing continues to be a cesspool for capital. The latest reading from the S&P/Case-Shiller Home Price Index of 20 major metropolitan areas in the United States continues to show declines, which, in my economic analysis,…

The "QE2" was launched two weeks ago. But it is not the legendary ocean liner "Queen Elizabeth 2" returning to active service. QE2 is the second wave of quantitative easing (QE) that the Fed has introduced by purchasing U.S. Treasuries.…

It seems that the U.S. economy is heading towards another recession. There is no other way of describing what the erosion of confidence is doing to it. Although the first half of 2010 has been more than decent, a number…

Wherever you look these days, headlines just keep contradicting one another. One says that more Americans have lost their jobs, while another is all excited about a new bull market in stocks. One product sells well, another doesn't. First, lending…