If you think the U.S. has big troubles, cast an eye across the Pacific. Tokyo said on Feb. 16 that Japan's gross domestic product, whacked by collapsing exports and a soaring yen, slumped at an astonishing annualized rate of 12.7% between October and December—the steepest fall since 1974. So Japan, once seen as well placed to weather the economic storm, is harder hit than the U.S. or Europe. Prime Minister Taro Aso, in office since September, now enjoys a popularity rating of 10%.