The economy shrank because people didn't spend at the expected levels.  When folks are unemployed or underemployed, they think hard about how much to put out for the holidays.  When the 4th quarter is that quarter that puts some businesses in the black for the first time all year, we are in trouble.  We are in trouble!

The economy shrank because businesses are cautious, not expanding and hiring more employees, but basically holding on to their capital.  With Obamacare, increased taxes, and more regulations, I certainly understand their caution.

Again, we are in trouble!