the last time it fell even for a single quarter was in 1991, and there hasn’t been a decline this steep since 1980, when the economy was suffering from a severe recession combined with double-digit inflation.

–KRUGMAN

When Consumers Capitulate
By PAUL KRUGMAN
Published: October 31, 2008
Sooner or later, American consumers were going to have to pull in their belts. But the timing of the new sobriety is deeply unfortunate.

  • GDP down .3%
  • Real Consumer Spending down 3.1%
  • Real Spending on Durable Goods down 14%