What shape are we in?
September 4, 2009Jon Brooks Comments OffReferring to the current recessionary cycle, 
Joseph Stiglitz says we may be in for a W-shaped recovery. Norel Roubini thinks we could go W or U. George Soros said he didn’t see a V anywhere in site.
What, exactly, are they talking about? Let us consult the Wiki.
V-shaped recession: “The economy suffers a sharp but brief period of economic decline with a clearly defined trough, followed by a strong recovery.”
U-shaped: “Longer than a V-shaped recession, and has a less-clearly defined trough. GDP may shrink for several quarters, and only slowly return to trend growth.”
W-shaped: A “double dip” recession, occurring when the economy “emerges from (a) recession with a short period of growth, but quickly falls back into recession.”
L-shaped: “The economy has a severe recession and does not return to trend line growth for many years, if ever…This is the most severe of the different shapes of recession.”
Some have also talked about a J-shaped recovery. But at this point, any recovery might just be termed “A-OK.”
