TheUS economy has further to fall, according to the majority of economists in the latest Wall Street Journal forecasting survey.

By a 3-to-1 ratio, respondents said the economy is in a recession, and almost three-quarters said the economy hasn’t yet hit bottom

The survey was the first since the Federal Reserve’s intervention to prevent the collapse of investment bank Bear Stearns Cos. The vast majority of economists — 80% of the 46 who answered the question — approved of the Fed’s handling of the Bear Stearns situation.

Could Americans be witnessing a new depression era?

“If so,” says Bill Bonner, “its most important feature will be a general markdown of debt and the relative value of Western assets — stocks, houses, currencies, and labor. The East and developing world is on the rise; even if it stays put, the West, in relative terms, will sink.”

“Some assets will go into default – which is what is happening in the financial industry lately. UBSalone has lost 38 billion. Hedge funds are going broke. And the captains – present and past – of the financial industry are pointing fingers at each other.”