recession now?

It looks like we've reached that point in an economic downturn when the negative trends start reinforcing each other.

In New York City, for example, a slowdown in the real-estate industry and a meltdown in the financial industry will result in a huge decline in tax revenue. The city saw hard times coming and put aside a rainy-day fund that will bridge the gap in fiscal 2009. But the city now calculates it will face a $2.3 billion budget gap in fiscal 2010. To prepare, officials will cut about $1.5 billion in expenses over the next two years.