The possibility of a double-dip recession is coming and real as the crisis in Europe is escalating. It is highly probable that Greece won't be able to service its debt and Spain is starting to show symptoms of struggling with its debts. Spain government has nationalized a bank and force 4 banks to consolidate to avoid getting into further trouble and god knows what will happen in portugal later. The austerity measures taken by EU are definitely anti-growth but this is being written off by overly optimistic economists and politicians.
US has disregarded Europe crisis as a major problem and will only cut back US growth by about1.2%. If Lehman Brothers could bring down the world, then Europe could be worse as it has more than 500m population and is a major trading partner in the world. By negating the impact of Europe, the world is making a major mistake and we'll pay a heavy price later.
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