Back in recession

Tom Healy: While quarterly national accounts data are always to be taken with caution the latest CSO data clearly indicate a return to recession - technically two quarters in a row. And total domestic demand has fallen by 26% from the peak in late 2007 to the end of 2011. We are now entering the fifth year of domestic recession. This significant 'inflection' point has been dwarfed by Mahon, Promissory Notes and other matters. Paul Krugman has a very telling chart issued a few hours after the CSO release here. A picture tells a lot.