Depression???

The Dow ended below 7,000 points today, an all-time low since 1997!
But what does it all mean?!

Last week, Federal Reserve Chairman Ben Bernanke, told the House Financial Services Committee that the "recession is serious, financial conditions remain difficult." He held out a best-case hope that it might end later this year, with "full recovery" in two to three years.

Again, what does it mean?! Are we headed to a depression? How can we tell?

"The Great Depression retains the heavyweight crown. Unemployment peaked at more than 25 percent. From 1929 to 1933, the economy shrank 27 percent. The stock market lost 90 percent of its value from boom to bust."

Unlike recessions, there are no set rules to define a depression. Credit remains tight, millions of homes are in foreclosure, and overall unemployment for the United States is at approximately 7.6% (as of January 2009)

Michigan is the state with the highest unemployment rate, currently at 8.4%, followed by Rhode Island and California.

So the question remains, are we in a depression? Only time will tell.