Is the current condition only making the recession worse?
With the banks making saving much more attractive to the general public by increasing their interestpayments thereby increasing the likelyhood that people will save instead of spend.
With banks sitting on their money holding back investments
Your question is basically a philosophical one. Who is to say what conditions are really better or actually "worse"?
To be sure current economic conditions are causing people to be more fearful and less confident in the future