Inflation or Double Dip Recession: The Greater Risk?

You might call it the trillion dollar question. Should the administration be more concerned with inflation or a double dip recession?

With so much stimulus money flooding the economy some investors including Fast Money’s Karen Finerman think it’s just a matter of time before inflation hits – and hits hard.

However other market pundits, including Nouriel Roubini warn double dip recession is the bigger risk.

No matter where you fall on this issue, you have to admit it’s a kind of damned if you do and damned if you don't conundrum. So what’s the lesser of the two evils – at least in terms of where the economy stands now.

For insights we turned one of the most influential economists and Obama advisors we know – Laura Tyson D’Andrea.

Tyson, who is a dean of the Haas School of Business at University of California, Berkeley says double-dip is the bigger issue.

“The possibility that we have a weak recovery with continued downside risk is very real,” she tells Fast Money. “That was the consensus out of Jackson Hole” where bankers from around the world gathered recently to discuss the recovery.

And it’s not just the Obama administration who thinks that. “It’s the consensus of administrations around the world.”

That may be what the politicos think but we want to know what you think? Tell us now!



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Trader disclosure: On Aug 28th, 2009, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Adami Owns (AGU), (C), (GS), (INTC), (MSFT), (NUE), (BTU); Jon Najarian Owns (AAPL), (BTU), (NVLS); Jon Najarian Owns (C) Calls; Grasso Owns (AAPL), (ABK), (ASTM), (BA), (BAC), (C), (COST), (CSCO), (PRST), (V), (WMT), (FAZ); Terranova Owns (AMZN), (FCX), (BTU), (SU), (WFT), (AAPL); Terranova Is Short (SHLD); Terranova Is Short (ESS); Terranova Owns (CCL) Puts

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