Are we on the verge of a 'double dip?'

Traders work on the floor of the New York Stock Exchange as concerns about the health of the American economy continue grow.

JEREMY HOBSON: Global stocks are down this morning after a plummet on Wall Street yesterday. It seems that bad jobs news, and poor manufacturing numbers are causing investors to wonder if we've hit a soft patch.

Or worse yet -- we're in a double-dip recession.

Marketplace's Gregory Warner tells us why there's so much concern all of a sudden.

GREGORY WARNER: Consumers aren't spending as much and yesterday we learned that companies aren't producing as much. Factory output fell by the sharpest level since 1984. That news combined with continuing reports about slow job growth and dropping house prices has investors worried. They dumped stocks and put their money into U.S. treasuries seen as safer in bad times.

Nariman Behravesh, chief economist at HIS Global Insight, said the recent spate of bad news doesn't foretell a second recession -- a so called 'double dip' -- but just means that recovery is always a slog.

NARIMAN BEHRAVESH: So it perhaps shouldn't come as such a big surprise that we have these fits and starts when it comes to growth. But I think there's nothing out there at this point anyway that would suggest we're headed into a true double dip. Slow growth -- yes. Double dip -- probably not.

By probably not, he put the chance at one in four.

In Philadelphia I'm Gregory Warner for Marketplace

About the author

Gregory Warner is a senior reporter covering the economics and business of healthcare for the entire Marketplace portfolio.
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As much as we yearn for a sharp recovery, it will not happen. We now live in a truly global dynamic economy where regardless of law and regulations companies have the ability to pick and choose where they invest and produce. One comment made by a NY times journalist said recently interviewing a Tech CEO. "We hired 5000 engineers last year. 1000 of them from the USA and the other 4000 from other countries citing better educated engineers. America needs to go back to school, cut up the credit card, stop living in this instant credit induced gratification and start living the notion, short term pain for long term gain. Also the global economy has made American exceptional ism an obsolete notion as our international creditors are also our competitors and former adversaries. Stale rhetoric laced with idiotic political and economic idealism is just the virtue of the viscous people who got us in this mess in the first place.

Why is it so hard to understand that the middle class has NO MONEY, hence, a weak domestic economy. We all should know the reasons by now. This Country has degraded into a rotten stinking economic crap pile dominated by moneywhores. Civil unrest lies ahead for sure.

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