The recent data are consistent with the view that this recession will endure longer and be deeper and broader than most. Characterizing the current period as a "recession" is still wanting, insufficient in some important respects. In my view, this period should equally be considered a panic, one that preceded, if not made more pronounced, the official recession.
Hence, the Panic of 2008, which preceded the calendar year, is a more revealing description of the recent economic and financial travails. As I will describe, panics involve generalized fears – often related to financial firms – that magnify economic weakness. The encouraging news, I should note, is that panics end. And this panic is showing meaningful signs of abating.