Economy in Worst Fall Since '82

Output Sank 6.2% Last Quarter; Plunging Trade, Investment Signal Trouble Ahead

The U.S. economy deteriorated far more than previously thought in the fourth quarter, according to new revisions of government data, casting fresh doubt about the chances of a recovery this year.

With falloffs in consumer spending and exports, gross domestic product declined at a 6.2% annual rate in the fourth quarter of 2008, according to a Commerce Department report Friday. The agency's first estimate for GDP, reported in January, was for a 3.8% ... Full Story »

Posted by Fabrice Florin
Derek Hawkins
3.8
by Derek Hawkins - Feb. 28, 2009

While others waste time deliberating about whether or not it's apt to compare this recession to the Great Depression, WSJ gives us the straight facts about growth over the last quarter. Well done.

See Full Review » (11 answers)
Dan Kennedy
3.8
by Dan Kennedy - Mar. 1, 2009

A well-executed overview of the poor state of the economy. Kudos to the reporters for explaining why the fourth-quarter numbers had been revised. My only caveat is that is a lot of disparate information packed into the story, making it some what difficult to follow.

See Full Review » (11 answers)
Mark Monday
4.2
by Mark Monday - Feb. 28, 2009

In-depth stories about our economic situation are not only good reads, they are essential to understanding our way forward. Education of the public is always the first role newspapers should play.

See Full Review » (19 answers)
Fabrice Florin
3.8
by Fabrice Florin - Feb. 28, 2009

Informative and concise overview of the 'state of the crisis', citing extensive factual evidence to suggest that a rebound is unlikely this year. This article contrasts the more optimistic views of the Obama Administration with the bleaker outlook from Federal Reserve officials and retailers in the trenches. Be sure to check the outstanding interactive graphics by Pat Minczeski and Alex Lowe -- including the additional graphic on consumer spending in the WSJ.com blog (see link).

To see the world from a different perspective, I recently switched my daily newspaper from the New York Times to the Wall Street Journal and am glad I did. WSJ offers informative, concise reporting, as well as exposure to thoughtful viewpoints that are very different from my own. One way to keep an open mind is to switch your sources regularly, to reduce one's dependence on a primary point-of-view.

See Full Review » (12 answers)
Dale Penn
3.8
by Dale Penn - Feb. 28, 2009

A dismal if factual report on the state of the economy, this article provides factual evidence to support its title both in the narrative of the report and the interactive graphs provided. Where the article moves into speculation about a future recovery, it is nicely balanced with different points of view, however it provides little to support anyone's speculation, and doesn't go into much depth in this area.

Still, Ms. Romer strikes an optimistic tone about the prospects for a turnaround in the economy later this year. The Obama administration Thursday offered economic ... More »

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Mike LaBonte
4.0
by Mike LaBonte - Feb. 28, 2009

The BEA has lots of numbers, and this story neglects to mention that it gives the real GDP numbers. If another story reports current dollar numbers they will seem to contradict. Also it might have been good to mention that the numbers still are not final. The Kelly Evans video clip tells pretty much the same story in less detail, a useful second way to get some of the information. The interactive chart tool is very nice; it helps to see the big picture. The viewpoint set is pretty good.

I added links to the BEA documents from which the story is no doubt sourced.

See Full Review » (12 answers)
Patricia L'Herrou
3.9
by Patricia L'Herrou - Feb. 28, 2009

a quite sobering picture of our economy laid out upon the facts/figures for vital factors, of the last quarter, corrected and, most helpfully, shown in easy to read graphs; altho here there's not much speculation here, a potential domino effect implied from these figures would indicate a further spiraling down to go--to include more jobs and home mortgages. and not much discussion of the recovery act as a safety net. for those not usually reading these, a graph comparison between these and a couple years earlier would be appreciated.

See Full Review » (11 answers)
Kenneth Sibbett
3.9
by Kenneth Sibbett - Feb. 28, 2009

A report on the sorry situation the last eight years of greed and spending has done to this country. While the stimulus is not the end all of end all, it's a start. With the new budget, while nothing we've ever seen, we have to roll the dice and hope it's not snake-eyes.

With republicans saying this is the biggest spending bill ever, this is also the worst economy ever. Now who's fault is that?

See Full Review » (12 answers)
Michael Bugeja
3.8
by Michael Bugeja - Feb. 28, 2009

This is a standard economic report developed to an art by the Wall Street Journal for the information that it conveys, rather than for the insight. In other words, the message is the recession will linger despite what Washington and the Federal Reserve predict.

I have been predicting this since the Fall on News Trust when Bernanke lowered interest rates to zero in an inane attempt to stimulate a manipulated market, ruining the fundamental relationship between savings and loans and setting up the world economy for a global depression.

Some economists have a much dimmer view, arguing the best the stimulus can do is prevent a recession from turning into depression. More »

See Full Review » (14 answers)
Marsha Iverson
3.9
by Marsha Iverson - Mar. 1, 2009

Solid big-picture view of our bleak economic outlook through key indicators, with reference to parallel drops for our major trade partners.

I found this piece interesting and informative, yet it left me wanting more information. I have long been puzzled by the tendency to report economic indicators as unrelated facts: it seems evident that rising unemployment would accompany declining GNP. Similarly, massive layoffs lead me to suspect there will be significant drops in discretionary spending. Of particular puzzlement is the customary inverse relationship between worker displacement and the "value" of securities. In an ... More »

See Full Review » (13 answers)
Jack Dinkmeyer
3.0
by Jack Dinkmeyer - Mar. 1, 2009

Because of recent biased articles in WSJ, I no longer trust the accuracy of its reporting and thus didn't rate this story as highly as others. I found the article to be overwritten and not at all straight forward in its topic points. Still, its sobering message is correct: things are going to get a lot worse and remain a lot worst for a very long time.

Why pick on 1982? Is it a technique to assuage what everyone is scared about: that instead of 1982, this has become 1932? And rather than recession, it has turned into--here's the dreaded word: DEPRESSION? Which it has already become in parts of America. So if a solution even exists, is it Obama's or Republicans' Limbaugh logic?

See Full Review » (20 answers)
Joel Kulenkamp
4.4
by Joel Kulenkamp - Feb. 28, 2009

A very well-detailed article, complete with charts, graphs, and other backup data.

The worst recession since the Reagan era!

See Full Review » (12 answers)
Kristin Gorski
4.1
by Kristin Gorski - Feb. 28, 2009

A complete assessment of where the U.S. economy stands now, and what the rest of 2009 could look like. The reporting team puts U.S. economic troubles in appropriate context by bringing in statistics about other country's economic indicators. Thoroughly sourced. The "Pulling Back" graphic at end of the piece presents additional stats in an easily understandable format.

See Full Review » (20 answers)

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