Is there a “W” in the Economy’s Future?

Some Economists think that the recovery will stall in the near future. Soon after a fall to or below prior lows will put us in a worse position then we were just a few months ago. Is this possible? The answer is yes and maybe even probable. It is going to depend on how much of this recovery is caused only by government spending. If the spending ends up being a catalyst to private sector recovery then the possibility of a “W” is small at best. The “W” occurs when government spending stops and private sector spending is no where to be found. This was what occurred in places like Butte, Montana because mining had closed to not reopen for nearly 10 years. The government support fell off within two years, thus the second downturn. It is hard to imagine the whole country going the same way as Butte. Diversity of our national economy should keep us from experiencing such a painful turn of events.