The Recession End is Not Near

Feb. 6, 2010 - PRLog -- According to analysts at creditrelease.com the economy isn't in such a plumb state that most experts would have you believe. Despite the obvious improvements in the stock market prices and the slight upward tick in the prices of houses, a recovery from what was experienced is nowhere in the current horizon. The road to recovery will be much tougher as we have yet to experience the "big one".

Experts at creditrelease.com believe that the current economy is demonstrating a typical "W" double dip formation. The first dip was the recession that the economy went through in 2009. It was set up to be one of the worst recessions that the modern economy would have experienced. If the government had not taken measures to arrest the downturn the situation would almost certainly be much worst than it is now. Without the government's intervention the recession would have followed a very pronounced "U" single dip with a very pronounced bottom stretching out for many years.

It is believed that it was the government's intervention in the form of large business bail-outs and targeted fiscal and monetary policy implementation that changed the way the recession presented itself. Now, instead of the hugely undesirable pronounced "U" recession, we are lucky to have the recession form a more manageable "W" double dip formation. The "W" formation is preferable because of the less severe impact that it presents to participants of the economy.
It is however believed by the experts at creditrelease.com that we are currently at the middle top end of the "W". We are currently enjoying a period where the government policies have artificially allowed for an abatement of the recession's downward spiral. This move allows the economy some breathing space and should allow businesses to gather resources to brace for harder hit in time to come.

Experts at creditrelease.com warn that this slight abatement and even slight positive should not to be mistaken for a long-term recovery. The analysts say that there is an extremely high probability that another more serious downturn will happen in the not too distant future. The exact timing or the trigger for this next wave of downward movement is anybody's guess but it will almost certainly come from the government's pulling back of its resources to fight the recession.

The people at creditrelease.com believe that it is now the crucial time where businesses / individuals will either be able to weather the coming storm or sink because of it. Businesses or individuals that intend to survive in the coming years must use this time to pad up their resources. It is the time to take in whatever cash that you have and hold it liquid so you can see your way through the coming hardship.

Those who mistakenly think that the worst is over will be in for a very big surprise in the next couple of years. This is especially so for those who start to expand operations in the false belief that the government spending and policies have taken a permanent effect. In reality it is the spending and policies that are keeping things afloat. When the spending stops the ravages of the decline will once again show its ugly head.

The message that creditrelease.com is trying to spread is that the worst is not over. Only the wise and prudent will survive the second dip. Are you going to be one of them?

Credit Release is a site owned by Ryan Parker that specializes in providing loan advice and access to special lenders who provide bad credit loans products for those with challenging credit histories.