The housing bust in America shows few signs of bottoming out. Sales of lived-in homes fell by 8.6% in November, according to the National Association of Realtors. At November’s depressed pace, it would take 11.2 months to clear the stock of unsold houses—up from 10.3 months in October and matching the peak in April. The median resale price for homes dropped by 13.2% in the year to November, a record decline. Sales of new homes fell by 2.9% in November.

Japan’s recession is deepening. Industrial production plunged by 8.1% in November, the biggest monthly fall for more than half a century. The unemployment rate rose from 3.7% in October to 3.9% in November; consumer-price inflation fell from 1.7% to 1%. ...

Unemployment in many rich countries has already risen above the “structural” rates—ie, consistent with stable inflation—estimated by the OECD. So far, the countries worst affected by increasing joblessness are those suffering painful housing busts. Among the hardest hit is Spain. The OECD’s economists reckon the country’s structural unemployment rate in 2009 will be just under 9% but the actual figure has already reached 12.8%. Ireland’s jobless rate has vaulted to 7.8%, well above its structural rate of 4.7%. In Britain and America, too, unemployment is now at a level that indicates too much slack in the economy. Unemployment in Germany is still slightly below the OECD’s estimate of its sustainable level.

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