Consider the iterations $$x_0 = 1, \qquad x_1 = \frac{1}{3}, \qquad x_i = \frac{13}{3}x_{i-1} - \frac{4}{3} x_{i-2}, \qquad i=2,3,\ldots$$ The exact solution is $$x_i = \frac{1}{3^i}$$

In :
from numpy import zeros, float32, float64


We first try with single precision.

In :
n = 20
x = zeros(n, dtype=float32)
y = zeros(n, dtype=float32)
x, y = 1.0, 1.0
x, y = 1.0/3.0, 1.0/3.0

for i in range(2,n):
x[i] = (13.0/3.0)*x[i-1] - (4.0/3.0)*x[i-2]
y[i] = y[i-1]/3.0
print "%6d %20.10e %20.10e" % (i, x[i], y[i])

     2     1.1111115664e-01     1.1111111194e-01
3     3.7037219852e-02     3.7037037313e-02
4     1.2346410193e-02     1.2345679104e-02
5     4.1181510314e-03     4.1152262129e-03
6     1.3834409183e-03     1.3717421098e-03
7     5.0404260401e-04     4.5724736992e-04
8     3.3959673601e-04     1.5241578512e-04
9     7.9952902161e-04     5.0805261708e-05
10     3.0118301511e-03     1.6935087842e-05
11     1.1985225603e-02     5.6450294323e-06
12     4.7920204699e-02     1.8816764396e-06
13     1.9167391956e-01     6.2722546090e-07
14     7.6669335365e-01     2.0907515363e-07
15     3.0667726994e+00     6.9691715510e-08
16     1.2267090797e+01     2.3230571244e-08
17     4.9068363190e+01     7.7435240442e-09
18     1.9627345276e+02     2.5811746074e-09
19     7.8509381104e+02     8.6039153580e-10


The iterations start to blow up around iteration 9. Now we try with double precision.

In :
n = 30
x = zeros(n, dtype=float64)
y = zeros(n, dtype=float64)
x, y = 1.0, 1.0
x, y = 1.0/3.0, 1.0/3.0

for i in range(2,n):
x[i] = (13.0/3.0)*x[i-1] - (4.0/3.0)*x[i-2]
y[i] = y[i-1]/3.0
print "%6d %20.10e %20.10e" % (i, x[i], y[i])

     2     1.1111111111e-01     1.1111111111e-01
3     3.7037037037e-02     3.7037037037e-02
4     1.2345679012e-02     1.2345679012e-02
5     4.1152263374e-03     4.1152263374e-03
6     1.3717421124e-03     1.3717421125e-03
7     4.5724737062e-04     4.5724737083e-04
8     1.5241578946e-04     1.5241579028e-04
9     5.0805260180e-05     5.0805263425e-05
10     1.6935074827e-05     1.6935087808e-05
11     5.6449773443e-06     5.6450292695e-06
12     1.8814687225e-06     1.8816764232e-06
13     6.2639467164e-07     6.2722547439e-07
14     2.0575194713e-07     2.0907515813e-07
15     5.6398875392e-08     6.9691719376e-08
16    -2.9940802813e-08     2.3230573125e-08
17    -2.0494197938e-07     7.7435243751e-09
18    -8.4816084023e-07     2.5811747917e-09
19    -3.4021076685e-06     8.6039159724e-10
20    -1.3611585443e-05     2.8679719908e-10
21    -5.4447393362e-05     9.5599066360e-11
22    -2.1778992398e-04     3.1866355453e-11
23    -8.7115981276e-04     1.0622118484e-11
24    -3.4846392900e-03     3.5407061615e-12
25    -1.3938557173e-02     1.1802353872e-12
26    -5.5754228696e-02     3.9341179572e-13
27    -2.2301691478e-01     1.3113726524e-13
28    -8.9206765914e-01     4.3712421747e-14
29    -3.5682706366e+00     1.4570807249e-14


The iterations are stable for more steps but they eventually start to blow up.