This has nothing to do with the economy. It has to do with the elimination of the horse slaughtering plants in the US and no place to send horses when a person no longer wants it.
Last year was a very bad year for hay (at least in Michgan). We all knew that prices this year would be high and horses would be available cheap at the auctions.
People were predicting $7-$8 per bale. It is not that bad this year... yet.