Unemployment continues to rise and those looking for work are typically not successful in finding jobs with living wages.
California's official unemployment number exceeds 12.3%. This figure understates the unemployment problem because it does not include those who were self-employed, those whose benefits have expired, and those working part-time although needing full time.
The states' rising unemployment creates a deflationary cycle.
As states/cities/counties cut state workers' hours and lay off workers unemployment grows in precisely that sector of the economy that Keynes argued must replace collapse of private sector demand.
There is no way the economy can recover when it suffers from a deflationary collapse caused by rising unemployment and underemployment.
Wall Street banks' recovery is a mirage enabled by fraudulent accounting that allows banks to avoid writing down losses.
It seems to me that the bankers are pillaging through bonuses while they can because they know at some point the game will be up as the losses become too large to hide.