Dr Doom: Double Dip Threat
Which one commentator suggested ‘might perversely be good for Labour’…
Nouriel Roubini, who predicted the 2007 financial crisis, wrote in a recent paper that the euro zone is also facing an increased risk of a double-dip fall, because of its ongoing debt crisis. And this would increse the risk of a double-dip across the Atlantic.
CNBC: Even if the euro zone does not suffer a double dip, growth in demand will be even more limited and this will hurt the United States’ potential for export growth, according to Roubini’s paper.
More importantly for us, economic data is increasingly pointing towards the possibility of the UK double-dip, which interestingly:
Bloomberg: “A weak economy might perversely be good for Labour,” Jonathan Loynes, an economist at Capital Economics Ltd. in London, said in a telephone interview. “To a degree it would support the government’s position that it shouldn’t try to tackle the budget deficit too quickly, and at the same time undermines the Conservatives’ position.”
Likely to cause consternation for those City voters hoping for a Tory victory. Even more so given their preference for Ken Clarke as Chancellor ahead of George Osborne, Vince Cable and Alistair Darling whose popularity for the post followed that order according to the latest CityAM poll.
