Double-Dips are Rare So...

Are your minds yet at ease? Have they not assured you all by saying that double-dip recessions are very rare indeed? In fact, their claim is they almost never occur.

While that is the truth, the important take away from that is; who cares? What exactly does that tell you other than this upcoming double-dip recession will be an aberration? In the roughly 130 years of stock market history, there is almost nothing we can say that happens so infrequently that the probabilities of reoccurring are infinitesimal.  There just hasn't been enough history to make that sort of judgment.

We have a synchronized global economic slowdown coupled with metastasizing sovereign debt crises, which was engendered by a massive amount of debt incurred on both the public and private sector levels. Those situations happen very rarely, but when they do, you get a depression.

GDP shrank by 3.6% during the Great Recession. During the Great Depression it shrank by 32%. Since we have yet to allow a depression to occur this time around; one must be still on the way.

Now I know what they say; the government has avoided another depression by spending and printing the economy into prosperity. So we don't have to pay for our transgressions because we can borrow money to pay off our debt as we inflate away the purchasing power of our currency.

Yeah sure, that will solve everything!