All Signs Point to Down

Regardless of your preference, all economic indicators seem to be heading in the same direction: down.

Home sales and home starts, as well as home prices, are way down and projected to fall further. Consumer spending is declining by double-digits (in annualized percentage terms), which is no surprise considering consumer sentiment recently touched an all-time low.

The national unemployment rate and unemployment insurance claims are rising nearly every month and week, respectively.

Factory production is falling, and inventories are rising.

Stock market capitalization is down across the world, especially in export-driven markets like Japan and Korea.

The US economy as a whole contracted in the last quarter.

The distinct lack of nuance in the economic picture has led most economists to project that the current recession (although not officially a recession) will be the worst in decades.

The Wall Street Journal reports:
The current downturn is shaping up to be worse than the recessions of 1990-91 and 2001 and the prolonged downturn that ended in 1982.

Banks are cutting back on lending, consumers are spending less, companies are shedding jobs amid sinking profits, and the housing bust that triggered the slide persists.