Output is turning around, employment has high rock bottom, some think the economy is on an inevitable path to recovery.

The anatomy of the fiscal crises in the US (as told by the SF Fed) predicts a different future. Two pictures peak a 1000 words…

As GDP fell, revenue plummeted 

 Spending adjustments failed to match revenue losses

The result?  "Aid to states in the federal economic program is winding down next year and the situation is likely to get worse before it gets better…"