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The Case For Double Dip Recession

If market swings are giving you indigestion, you’re surely going to need an antacid after you hear this!

"The prospects for a US recession next year have edged up from a toss-up to around 60%," says esteemed economist David Levy of Jerome Levy Forecasting.

In addition, Levy warned that even with the ECB’s $1 trillion bailout, "severe and misguided fiscal policy will whack the Euro zone countries, the greater European economy and the global economy."

And he also says if we go into a double dip recession, "the global banking system may not be as readily or swiftly reinforced by central banks and other government entities, as policymakers face more political resistance.”

What's the bottom line?

One word - Yikes!

Check out our entire interview with David Levy; watch the video now.



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Trader disclosure: On June 2, 2010, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Terranova Owns (SWN), (GLD), (IPSU), (RSX), (PFE), (TER), (APA), (AXP), (BMO), (BBY), (DIS), (XCO), (AAPL), (CVS), (IPI), (TEVA), (FXB); Adami Owns (AGU), (BTU), (C), (GS), (INTC), (MSFT); Kelly Owns (FXE) Calls; Kelly Owns (IBM) Calls; Kelly Owns (STD) Calls; Kelly Owns (NBG) Calls; Jon Najarian Owns (GS), (JPM), (CAM), (BP); Finerman’s Firm Owns (AAPL); Finerman Owns (BAC); Finerman’s Firm Owns (BAC); Finerman Owns (BBY); Finerman’s Firm Owns (BBY); Finerman Owns (BP) Calls; Finerman’s Firm Owns (GOOG); Finerman’s Firm Owns (GS) Calls; Finerman Owns (HPQ); Finerman’s Firm Owns (HPQ); Finerman Owns (JPM) Calls; Finerman’s Firm Owns (JPM); Finerman Owns (RIG) Call, Puts & Stock

For Joe Terranova
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Terranova Is Chief Market Strategist Of Virtus Investment Partners, LTD.
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Kanundrum Owns (GFI)
Kanundrum Owns (FCX)
Kanundrum Owns (CLF)
Kanundrum Owns (GLD)
Kanundrum Owns (AUY)
Kanundrum Owns (GFI)
Kanundrum Owns (STD)
Kanundrum Owns (NBG)
Kanundrum Is Short (CME)
Kanundrum Is Short (STT)
Kanundrum Is Short (XLF)

For Collin Gerry
Raymond James & Associates co-managed a follow-on offering of (HERO) in Sept. 2009 Raymond James & Associates is a nasdaq market maker in (HERO) Raymond-James & Associates received non-securities-related compensation from (HERO) in past 12 months

For David Levy
Levy Owns U.S. Tresuries
Levy Own Options In Euro-Dollars Futures
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