Mmmm! Double Dip!

Who doesn't want that extra scoop of ice cream after a long day at work? I know I always have a problem with over-indulgence when it comes to sugary treats before bed (especially ice cream). Unfortunately, that isn't the kind of double dip I am referring to, but I wish I were. The economy has been less than spectacular over the last few years and there are mounting fears that it could “over-indulge” and take a double dip downturn in the near future.

Well, according to the WSJ.com, there is good news and bad news. The good news is that, although the economy is still not where we want it to be, economists believe that it would take a “significant shock” to derail its current position. Luckily, most economists think that the economy will “right” itself. So, what could possibly be the bad news? The truth is, in this “current environment”, there are a lot of possible “significant shocks” that could cause some serious problems. For example, the tsunami that ravaged Japan, or the terrible tornados that destroyed parts of the Midwest, both of which are real eye-openers to what can happen at any time. Rising gas prices don't help much either. I assume that filling your tank is probably not the highlight of your day, unless you like that sort of thing.

Unfortunately, those aren't the only bad things. There are even more problems to worry about, especially if you are a worrier. Thankfully I am not, but maybe you are. “The wrangling over the budget in Washington could stifle the economy just as a Fed rate increase would, says Bank of America BAC Merrill Lynch economist Ethan Harris.” The budget debate is definitely something that we need to get past, that's for sure, but it's hard to say when that will happen.

If the economy takes a double dip then that will have a big effect on most industries, especially commercial real estate. Businesses will be more wary of their real estate investments and people might decide that moving into that new condo isn't the right move for now. High gas prices, unemployment, and natural disasters, all factors contributing to our current economic situation, also have a negative affect on commercial real estate. Vacancies might be harder to fill, and properties harder to get rid of, in the wake of further possible economic woes.

So what should we do? It seems as though we need to batten down the hatches and prepare for the worst, but still hope for the best. You never really know what the future will hold. That's why I am going to make sure I eat as much ice cream as I can, while I can, and hope that the economy doesn't decide to over-indulge like I plan to.

Do you think the economy will double dip? If so, what flavor do you think it will choose? I'm going to say chocolate, but it could always throw us a curve ball and go with vanilla or raspberry.

Source article from the Wall Street Journal by Justin Lahart at WSJ.com

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