There was no end of month bounce. It was sunk prior to the open by the GDP report of -6.2% as against the prior quarter of minus 3.8%.  At that time there was some scepticism that it was only -3.8%, but now the GDP figure has caught up.

The Markets did not like it. They did not really need confirmation that things are bad, but it became a matter of sell on the fact.  The markets tried to recover and nearly reached a positive number, but then sold off in the last half hour.  The month of February finished down 4.5% to make a loss of 18.6%  YTD

California says its unemployment rate has risen to 10.1%, the highest reading in 25 years.

What we are seeing now is a downward spiral.  Job losses lead to more delinquencies, both homes and credit cards. This causes firther contraction in consumer spending, which leads to further job losses etc.  Retailers, shopping mall owners are doing it tough. Of course this means car pruchases are put off even further into the future causing more losses in the auto industry.

Large companies are cutting dividends big time.  Again this will affect the income of those who depend on those dividends.  The spiral continues.

At what point does the spiral bottom out?  It took WWII to end the last big depression.  President Bush tried war, but the cost of war is part of the problem.

America has been likened to an Empire of old.  It expanded its sphere of influence further and further and had the reserve curency of the world.  History records that all Empires eventually collapse. We could be seeing the end of the American Empire unfolding before us.