Things are not as bad as we expected them to be!
There is a lesson here for everyone(besides the open bias/cheerleading by the Associated Press) and that is: Pessimism will always mean you are pleasantly surprised.
Update: AP adds most ridiculous economic headline of the year: "Productivity gains may hurt job seekers." Productivity gains are the only thing that raises our standard of living in real terms.
Update II. AP: Actually it's still really bad and it's too difficult to hide now