Don't Fear the Double-Dip Recession

The U.S. economy has little momentum, but don't expect it to start moving backwards.

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No major shocks. Growth is slow and the jobs situation is a mess, but that by no means prefigures negative growth, says Prakken, who notes that movements in the stock market and current credit availability do not show signs of an impending "shock event" that might trigger a recession. He adds, "The configuration of other financial and shock events that preceded other recessions are not in place now. And once you hold constant for those other forces, the times that economic growth has slowed this much they have not been moved right into recession."

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