The Japanese industrial output figures show a drop of 8%. That should come as no surprise.
Other economies will also produce dreadful figures for manufacturing output in the weeks ahead, as there is now a big shut down underway which will last well into the New Year.
People ask why the lower interest rates and the budget stimuli are not working. The answer is simple. It always takes time for them to work in normal circumstances. Interest rates need to be moved about a year ahead for them to work through. That is why this site was calling for halved interest rates over a year ago, to try to fend off the worst of the downturn.
But nothing will work well unless governments and banks work together on how to fix the banking system. Together they wrecked it, and together they have to fix it. In the UK all the time the Regulators decide to throttle the banks with higher capital ratios, they will be forcing more people out of jobs and more factories onto short time. The choice is theirs. As they have been doing for the last five years they are making the choice which maximises the agony.