While our belief continues to be that a double-dip scenario is unlikely, we think the odds that we may be headed back into recession have increased ever so slightly. In our opinion the economy is moving along at a rate of growth akin to stall speed, an aeronautical concept that describes the speed below which an airplane cannot create enough lift to sustain its weight. The longer our economy proceeds at this low level of growth, the greater the chances in our view that some exogenous factor or event could be enough of a headwind to push the economy into recession.
While our belief continues to be that a double-dip scenario is unlikely, we think the odds that we may be headed back into recession have increased ever so slightly. In our opinion the economy is moving along at a rate of growth akin to stall speed, an aeronautical concept that describes the speed below which an airplane cannot create enough lift to sustain its weight. The longer our economy proceeds at this low level of growth, the greater the chances in our view that some exogenous factor or event could be enough of a headwind to push the economy into recession.