At least we're not in Asia.

[Zynx]

If there's any consolation regarding our economic situation, it's that the situation is worse elsewhere, sometimes much worse.

4th quarter GDP in East Asian economies was jaw-dropping bad.

(All rates are on an annualized basis)

Japan: -10%
Singapore: -17%
South Korea: -21%
US: -3.8%

Japan has also seen declines in industrial production in the past four months that exceed any 12-month decline the U.S. experienced during the Great Depression.

http://online.wsj.com/article/SB123351421571336963.html?mod=googlenews_wsj
http://thestar.com.my/columnists/story.asp?col=globaltrends&file=/2009/2/2/columnists/globaltrends/3173744&sec=Global%20Trends

That's nothing short of staggering.

[Common Sense Party]

1. And anyone who though our stock market sucked last year (it did)

should see how most foreign markets fared. Yikes.

[Zynx]

3. For the first time in three years I felt smart for being U.S. heavy in my portfolio.

Most of the foreign markets have collapsed in spectacular fashion.

[Hello_Kitty]

2. That's what happens when your economy depends on the US consumer

And the US consumer ain't got no more money to spend.

[Zynx]

4. Exactly.

[HamdenRice]

5. But it's misleading because they have safety nets and savings, especially Japan

The thing is we often confuse raw economic numbers with well being and misery.

In the US, a small down turn leads to bankruptcy, homelessness, potentially catastrophic loss of health insurance and on and on.

In Japan, the contraction is often shared between management and employees, and among employees; everyone continues to get health care; and most people have a year or more savings, so the wolf is not at the door.

Same with Europe. If you lose your job, life pretty much goes on.

It's those many factors that the numbers don't measure.

[damntexdem]

6. Are you sure?

Have you checked on your local nuclear power plant lately? ;-)

[Zynx]

8. I actually wondered the same thing when I took most of my economics classes.

;-)

[madrchsod]

7. china is about to collapse under the weight of their controlled economy

they are down almost 3%. the social unrest is just starting in china.

[Zynx]

9. Considering international trade declines far faster than general economic activity in downturns

this will be very intense.