Roubinis says Risk of Second Dip Rising - Just another day in the mortgage mess

I heard on CNBC that Professor Roubini believes the risks are rising for a second dip.

On the contrary, as a person living on Main Street, I ask myself if it could be possible this financial crisis began its legs back in 2002, when the first recession hit us? Remember, after 9/11, Greenspan cut the rates instead of letting the free markets run themselves. Businesses were not strong enough to carry the economy, so this country turned to the consumer and homes. Homes became a commodity you could say, where values and risk taking rose to levels we had never seen in our lifetime and, yet, the government never intervened to stop the irrational exuberance from taking place. Why? This is the only question I ask myself regularly. Why?

In knowing this, someone at the top had to know what our future held before 2007. The consumer and home prices hit all time highs, before everything came falling down on all of us. The recovery that began after the recession in 2002, was never a true recovery, as we all have learned. It was just a fallacy; a figment of our imagination it seemed. Once stripped of that flying red carpet, many of us lost nearly everything and/or hung on for dear life. I believe the "so called" W began forming back in 2001, shortly after 9/11, leading us into a recession in 2002. Thereafter, a fake recovery began in 2003, only to crash on us in 2007, forming the third leg of the W. In conclusion, this upcoming recovery is the start of the last leg of the “so called” W, in my opinion. It is the upward leg that is going to have zig zags in it creating a zig zagged line, rather than a straight line upward. It could be a bumpy ride up, but it seems as if the last leg of the "so called" W is going to form, finally.

In conclusion: This is my observation and opinion of the past eight years. I believe the “so called” W is forming as we speak. I believe the last leg of the “so called” W is going to start moving upward this coming October/November. However, this leg may be a zig zagged leg rather than a straight leg. I think the prediction of a second dip is from the viewpoint of someone who truly did not understand the make-up of this crisis, after it hit us. This is just my opinion, from here on Main Street. I am hopeful of the future, more than I have been these past twenty-nine months. I have to believe in Chairman Bernanke.

Just a thought from someone on Main Street!

Stay tuned...I have more to share. Just another day in the mortgage mess!