Double Dip Recession ? We were warned !

The US has downgraded its forecasts for the US economy and markets there are now planning for a double dip recession. Likewise, houseprices have again stalled and spending on the high street is down in latest figures released in th UK today. All the signs point to a raised liklihood of a double dip recessions.

Now a few months ago the Lib Dems were warning against cutting too deep and too early because of fears of a double dip recession, yet in coalition with the Tories, this is exactly what we have done.

So if we do get a double dip recession, what should I say ? We told you this would happen but ignored our own advice.


Anonymous said...

The US government keeps supporting its economy, which is now likely to stall after all. If they get a double dip, would you still think the same policy here would have avoided one? The strategy of waiting until the end of the year was partly based on the expectation that the rest of the world economy would pick up. It hasn't as much as hoped. Keynes's quote comes to mind: "When circumstances change, I change my mind. What do you do sir?"

House prices are not "stalling" by the way - they are falling, which has more to do with the abolition of HIP's, making it easier to put properties on the market, than anything else.

Anonymous said...

It's hard for the US on it's own to combat recession, with Europe cutting, Japan stagnant and a half hearted US bailout package, the US may be better off cutting it's losses and join in the recession MK2

Stephen Wigmore said...

Remind me why an average forecast of growth of 2.3% among various independent commentators equates to a double dip recession?

Also remind me why the fact the US, which has yet to range in its stimulus spending, is also facing a difficult recovery proves that stimulus spending is some magic solution to economic problems?

Anonymous said...

Funny how the US are facing a double dip recesssion after all that fiscal stimulus they have pumped into their economy just as the Labour Government(and Lib Dems) were advocating here. If we had continued borrowing and spending what would you now be blaming the doublle dip on? Oh I know, its a Global Double Dip creeated by the US.

Anonymous said...

Don't say the US fiscal stimulus is half hearted. They nationalised GM for gods sake! Can't imagine even our profligate Labour Government nationalising such a major manufacturing industry.