Double dip recession
The economy has stop plummeting. I don’t even have to read the figures. I know because pundits are worrying about a double-dip.
Will something something catastrophic happen that flips the economy down another slide?
People are worried about the amount of money the European governments are taking out of the economy.
People are worried about developers defaulting on commercial buildings.
People are worried about house prices flat lining.
Where will jobs and business opportunities come from? Economies and jobs grow in a good year at 3%. And jobs follow businesses? How long will the recession take to clear?
More, to the point, where will growth happen? Which sectors should energetic young men and women watch and prepare to join?
Will the double dip recession happen?
Not everyone thinks a double dip recession will happen. Prieur du Plessis of Seeking Alpha is one and here is his excellent summary.
But in the summary is the very reason why a double dip recession might happen.
Companies are making money hand over fist. And hanging on to it. Consumers are spending less. Demand somewhere is dropping.
How did companies make the money? And why aren’t they reinvesting it in productive activity?
du Plessis believes capital is like a dam. Fill up the dam with money and it will find a productive activity to invest in.
Maybe. I’ll watch.
What am I watching as we wait for a double dip recession?
While we wait to see if the weasel goes pop, I am watching the capital stacked up in western companies.
It’s supposed to signal productive activity. Where will future productivity lie?
That is the question.
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