Double dip recession: What are the odds?

Have you been hearing the term “double dip recession” lately? Do you know what it means? It refers to a recession followed by a short-lived recovery that then slides back into a second recession. That said, do you think we are in for one? With a plunging stock market as I write this due to the Gulf oil spill and unemployment at an all time high, it’s not difficult to imagine. In an article on CNN.com, it is explained that a chance for a double dip can be measured by fluctuations in gross domestic product, or GDP, one of the broadest measures of economic activity. They explain that GDP would have to go into negative numbers again for us to fall into a double dip recession. Although growth might not be as high as the GDP growth in 2009, it’s not likely it will turn negative again. David Wyss, chief economist with Standard & Poor’s said the odds have shrunk to a 20% chance. I’ll bet on those odds.

Read the full article here.