When it comes to chocolate covered ice cream, I’m all for double dips. In terms of the United States economy, I don’t believe we will see one.
At the beginning of 2011, I gave seven reasons I didn’t believe we would see a double dip. Despite the unpredictable world events and catastrophes, we didn’t. Our economy held steady.
As I look at how 2012 is shaping up, I believe there are four reasons we will also not see a double dip this year either:
As we ended 2011, we saw consumers buying cars again and increasing their credit debt. While I don’t believe you will see people extend their credit as greatly as they did prior to the Great Recession, we are seeing the end of the consumer’s massive deleveraging.
Job creation has significantly increased. At the end of 2011, we saw a decrease in the number of filed unemployment claims. We also saw an increase in the number of new jobs created. I think this will continue.
We will see the housing market begin to rebound. Last November I was joined by the President and CEO of Freestone Companies, Scott Griffin. He gave excellent insight into the current and future housing market. You can learn more about what he had to say here.
Banks are in better shape than they were even a year ago. Plus, with the new Volcker Rule, banks have more restrictions placed on how they can use and invest their money.
For more information on all of these topics, I encourage you to listen to About Money, a weekly podcast and radio show. You can also follow us on Facebook and Twitter for blog updates, podcast news, and more!
I want to hear your opinions; please leave a comment below and let me know your thoughts.