Monday, April 26, 2010

SOS Double dip?



Any chances of double dip in the US stock market? Some says, No, just look at the
  • corporate earnings
  • manufacturing index
  • consumer index
  • stock market index
  • sentiment index
Some say, Yes, likely a double dip because
  • housing still weak
  • refinancing of commercial properties is due USD0.5trillion
  • unemployment stagnant
  • credit did not grow
  • derivatives problems still unresolved
  • government deficits is not sustainable
MyView

If we study the reasons above carefully, one is talking about the past, the other is talking about the present and future.
The double dip basically relies on the present and future variables, not so much on the past. After all, it is questionable whether the past reasons are sustainable?

No comments: