Last week, I did a blog entry looking at the likelihood of this being a W-shaped recession, that we are headed for the double dip.

Now Dr Doom Nouriel Roubini warns that a double dip looks increasingly likely. Writing in the Financial Times, says there are two reasons why a double dip recession is likely.

First, are those massive budget deficits that have left them in a no-win position. Whatever they do, policy makers are screwed. If they wind back the deficits by increasing taxes and spending cuts, they could undermine the recovery and tip the economy into stagflation. On the other hand, if they leave the deficits untouched they will be punished by the bond market. That will raise interest rates on their massive debt. Inflation could also rise.

The second reason why we might be headed for a double dip recession is that oil, energy and food prices are now rising faster than economic fundamentals warrant. That's being driven largely by commodity traders cashing in on the lift in markets and making big bucks with their trades.

Get ready for a long hard haul. The light at the end of the tunnel might be a train coming the other way.