Personal Finance

Top Economist: Double-Dip Recession Possible in 2012

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There’s a 40-percent chance the United States will slip into another recession in 2012, according to Doug Duncan, chief economist for Fannie Mae, the taxpayer-owned mortgage giant.

“We don’t think the economy is going to go into recession, but it wouldn’t take too big of a trigger to tip it,” Duncan told the San Diego Source newspaper.

[Related Articles: Read more on the recession]

If we do fall into a double-dip recession, the main reason will be: Jobs, or lack thereof. The nation’s unemployment rate remains roughly the same today as it was a year ago, Duncan said, which continues to be a drag on the economy.

“It’s so dependent on unemployment,” says Duncan. As a result of continued joblessness, “This is the weakest expansion since World War II,” he says.

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Image: Jerry, via Flickr.com

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