Japan's economy during the first three months of 2009 shrank at its quickest pace since records began, as exports slumped, officials figures have shown.

Output in the world's second largest economy contracted by 4% during the period, or by 15.2% on an annual basis.

Japan's economy, which depends heavily on exports, has been hit hard by the global downturn.

[...]

The figures from the Cabinet Office show that this is the fourth quarterly fall in gross domestic product (GDP) in a row, after a 3.8% contraction between October and December 2008.

The BBC's Roland Buerk in Tokyo says people around the world are buying fewer of the cars and electronic gadgets that Japan is renowned for.

In the first quarter of this year, Japanese exports declined by 26%.

"Weakness in the corporate sector is gradually spreading to households," Prime Minister Taro Aso said during a budget hearing to Parliament.

"This is a very serious situation, so we need to respond appropriately."

Investment in factories and equipment dropped by 10.4% in the first quarter, a sign that firms are reducing their outlay. Consumer spending fell by 1.1% during the same period.

Unfortunately I think we are no where near the end of this economic situation,  abroad or in America.  Here at home we are still losing near 500,000 jobs a month.  I do not care what economic model you use, those are horrendous numbers.  Now this news from Japan.  I think people's understandable desire for the good times to return is blinding their rational judgment.  In the Great Depression the stock market had numerous bouts where it looked as if it had turned the corner, each time to plunge downward again.  I hope Geithner is listening...we need more than band aids to fix this mess.