Double Dip? Seven Reasons Why Not
From Lord Abbett's senior economist Milton Ezrati in today's WSJ:
"It seems these days that half the headlines in the financial media fear a double-dip recession, as do half the conversations on Wall Street. There certainly are risks, not least in Europe’s financial difficulties. But still, there are reasons to question such widespread concerns. History, after all, offers only one true double-dip experience, and that grew out of a policy error. More, the actual data on the economy fly in the face of such an outlook. Following are seven reasons to doubt the double-dip outlook."
The reasons include: Consumer spending is firm, housing data are misleading, business spending and exports are awfully strong for a dip, overall production is good, employment is not so threatening, financial markets are healthier than the headlines imply, and China continues to grow.
Read the rest here.