While a lot of data suggests that the great recession ended in June 2009, many are concerned about the possibility of a ‘double dip’ recession. You can see this reflected in the number of mentions that the term “double dip” is repeated in the media as well as the number of internet searches for it.
Here is a chart from Google Trends showing the growing popularity of the term in the US:
The spikes correspond to August 23rd 2009 and November 15th 2009. This is the same chart from Google Trends but represents data for the entire globe:
And here’s a chart (courtesy of Grant’s Interest Rate Observer) showing similar data from another source:
It is wise to be cautious when you find yourself among the majority because usually the majority is wrong. But if we zoom back a mere two years, when I wondered if the recession was inevitable, Google Trends was showing a similar growing concern for the word “recession”. And that proved an accurate prediction of what was to come. So I wonder if the popularity of “double dip” is less contrarian and more prescient.
Of course, throughout this analysis, I’m assuming here that “double dip” isn’t followed by “glazed donuts” but rather refers to the economy.
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