Kiss That V-Shaped Recovery Good-Bye: The U.S. "Worse Than Greece," Says EconomistSubmitted by rebelsoul on Wed, 02/17/2010 - 11:25
My argument is this.. there is NO double dip because we have not come out of the recession..
Kiss That V-Shaped Recovery Good-Bye: The U.S. "Worse Than Greece," Says Economist
Posted Feb 15, 2010 08:30am EST by Peter Gorenstein in Recession, Banking, China
Related: tlt, tbt, xli, udn, uup, spy, dia
There's been many letters and symbols used over the last year to describe the shape of the U.S. economic recovery. There's the strong V-shaped recovery; the square root shaped recovery to connote a strong recovery followed by a period of flat to no growth; and the W-shaped recovery favored by those believing in a double dip recession.
Tech Ticker guest Michael Pento has a new twist on the discussion. Pento, senior market strategist with Delta Global Advisors believes this is a tee-pee shaped recovery with the top of that tee-pee having already formed in the fourth quarter.
Pento is negative on America's near term economic prospects for three main reasons: too little bank lending, too few jobs and too much public and private debt. "I've never seen a v-shaped recovery occur when commercial bank lending was down 7% year over year. So, small business are not getting loans to create capital goods and to expand and hire individuals," he observes.