Beware the double dip

I have come across an article from Adrian Colosso, the CEO of Heath Lambert, the insurance broker. I find interesting his commentary on the insurance market , the Quinn farrago and the lack of any memory amongst most participants in the financial markets so that the same mistakes are repeated. But what really struck me is that he raises the possibility of a double dip recession. It is already evident that the political parties in this election are ignoring the problem of the deficit and arguing over relative trivia or over their assumptions for when the deficit stimulus should be wound down, as if they will have the luxury of deciding. I suspect the bond and foreign exchange markets will make that decision, not the next government. But what none of them seem to have is a contingency plan for dealing with a double dip recession if one emerges. Given the weak state of the UK recovery and the number of extraneous factors to deal with, ranging from volcanic ash clouds to the possible torpedoing of a South Korean warship, I wonder whether it is wise to ignore this possibility.