Seriously, things were okay as long as there was strong demand for our exports, but when global demand did a 180 I knew we were in for it. 2009 is going to be a year to forget, but we must not mortgage our future again like has been done in the past. Education (as I have been harping on incessantly) is absolutely essential to protect. Especially, but not only, K-12.
I hope a federal fiscal stimulus package includes huge transfers for states, because this is where the negative feedback loops are going to occur. States are hurting so, as they are constrained by budgetary rules to engage in deficit spending, they cut spending and raise taxes causing it all to get much, much worse.