Will We Have A Double Dip?

This leads me to say yes.
From Richard's Real Estate and Urban Economics Blog, via Mark Thoma:

The Government Component of the  National Income and Product Accounts for the past 6 quarters (QI 2010 through Q2 2011):

21	Government consumption expenditures     and gross investment	-1.2	3.7	1.0	-2.8	-5.9	-1.1
22	Federal	2.8	8.8	3.2	-3.0	-9.4	2.2
23	National defense	0.5	6.0	5.7	-5.9	-12.6	7.3
24	Nondefense	7.8	14.7	-1.8	3.1	-2.7	-7.3
25	State and local	-3.9	0.4	-0.5	-2.7	-3.4	-3.4

Anyone see a problem here? It's not like we have seen a rip-roaring "crowding-in" of the private sector.

As he says, with the deficit reduction plans in Washington, and state and local budget cuts, these negative numbers will continue, dragging the rest of the economy down.  It will get worse before it gets better.