More Bad Economic News

In case anyone needed further evidence of the miserable job George W. Bush did as steward of the nation's economy, we have figures that show that the economy suffered its sharpest decline in more than a quarter of a century in the final three months of 2008.

Economic activity shrank by 3.8%, CNNMoney.com reports. And it has further bad news. Some economists think that, even though the decline wasn't as bad as some had feared, it's a sign that worse news lies ahead.

Meanwhile, as American consumers were absorbing the shift in economic fortunes, spending fell at a 3.5% annual rate, which CNNMoney.com says is the seventh largest drop on record.

And fixed investment dropped at the highest rate in half a century. As CNNMoney.com observes, fixed investment in equipment and software is "taken as an indication of business spending."

Economists expressed surprise at the growth in business inventories.

Chris Isidore, a senior writer for CNNMoney.com, says the increase was "brought about by businesses being unable to sell the goods they had on hand."

And, according to Gus Faucher, director of macroeconomics for Moody's Economy.com, "As bad as this quarter was, it means the first quarter will be worse."

It's hard to say what the impact will be on jobs. We'll get the latest report on jobs next week. But President Obama seems to have a pretty good idea of what's ahead.

"This isn't just an economic concept," he said. "This is a continuing disaster for America's working families. As worrying as these numbers are, it's what they mean to the American people that really matters."