Yes, the economy is as bad as you describe. There are plenty of people at top ten law schools who can't find decent work either. The main problem is not the overall economy, which is showing some signs of improving, but rather the fact that the system is vastly oversaturated with qualified attornies.
Having read your original post, however, my question is what your goals are (and were) with respect to law school? Did you attend law school because you love reading law and doing research and writing? Or did you simply have an unrealistic expectation of "success" and salary?
My advice would be if you love the law so much that you can't see yourself doing anything else, then keep going. Even if you're making $60-80K/yr. you'll still be happy with your work. (And the debts won't overwhelm you.) If you don't love legal work, however, then no salary would be worth the amount of work involved. In that case, I would urge you to do what you love. Life is too short to do otherwise.