I think even The Nation doesn't realize how bad the situation is and that it is going to get much worse.
First, the Wall Street Banks are, on the whole, insolvent. There is no appetite for banks to lend, nor will there be for years. The privately owned and operated Federal Reserve will protect these crippled institutions at any cost, including letting the economy suffer greatly.
Here are two charts. The first graph shows the coming of the second wave of foreclosures. The recent headlines that foreclosures were declining are lies. The banks have been holding back on recognizing foreclosures by the hundreds of thousands to pare the numbers. This graph was prepared two years ago, before the unemployment situation blew up. There will be even more foreclosures due to job loss.
The second graph shows the states and their budget deficits as a percentage of their budgets. Notice it is, save Texas, the biggest states in terms of population that have the biggest shortfalls in tax receipts. Come July 1, 2010, these states and their local governments and school districts will be cutting hundreds of thousands of jobs, which will in turn lead to the loss of millions of jobs, further exacerbating the states' plights in terms of tax receipts and unemployment payments.
Rising foreclosures, a commercial real estate melt down, rising bankruptcies, insolvent states and even more insolvent banks are what is dead ahead of us. I suggest you read my reply to Robert Pollin in your letters page for Pollin's "18 Million Jobs by 2012."