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There's no doubt the recession is winding down. The hot question now is, what shape will the recovery be?
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CNBC.com |
It all depends on how optimistic you are about the recovery—and the economy's prospects for growth.
A recent survey found the debate centers on three components: The speed, strength and durability of the recovery.
"Some of these shapes are dizzying!" said Alyx Kaczuwka, author of the blog LOLFed.com, about all the alphabet theories of recovery.
The three main shapes being tossed around are the "U," the "V" and the "W."
U, the most popular shape, is for those who think we're going to wallow at the bottom a bit before growth begins. The Vs think once it takes off, it'll be a steady climb. And the Ws say — prepare for another dip on this rollercoaster.
The "L," of course, is the doomsday scenario: We hit bottom, and there's no end in sight.
This recession being as extraordinary as it is, there have also been some, well, extraordinary shapes being tossed around in recovery-theory circles. The latest one is the "triple-U" — basically the W's who've grown more pessimistic and think the lows will be low and we'll be on this wild ride for a while.
There are also a few "N" theorists — they're even more optimistic than the V's on the recovery, suggesting once the recovery starts, it will be like a rocket.
A group of "O's" has emerged — mostly critics of the current administration, who think Obama's going to have us going in circles for a while.
And, a couple of wild cards: The "square-root"-shaped recovery, where you take your basic "V" and slap some stagnant growth on the end, and the "Mickey Mouse" recovery when means — well, let's just say there may be a few loop-de-loops.
Fasten your seatbelts and get ready for some of the more bizarre theories of economic recovery!
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