Double Dip on its Way

The economy has had quite a run, but while the third quarter results are likely to show our economy grew during the quarter, too much of this growth is due to short lived stimulus programs. Everyone who had the opportunity to trade their clunker in for a newer car, and all those first time home buyers, have gotten their share of the pie, and this causes problems down the road.

With the unemployment rate still high, and a lack of job creation (did I mention a growing budget deficit), those who fall into the long list of people looking for a job and even those who are fortunate not to have made the list are likely cutting back on purchases.

Without another round of quick pop stimulus programs such as "Cash for Clunkers" the fundamentals are sure to come into plainsight once again, and drag us easily back into negative growth. All those end-of-year purchases (homes, cars, durable goods) have likely already been consumed in the third quarter and boosted us out of recession - really a great way to ignite spending - so without additional programs we are likely looking at another disappointing 4Th quarter.