Just about it is, yes. Apparently. It has been worse than this in its past though, so it may well rise again.
Regarding Rooney playing for Everton, I would say he will definately end his career there. He is an Everton fan through and through, and after he has done winning things he will no doubt want to return to the club he loves. Like Celtic always end up getting - past-their-prime decent players who want to end their career there, or at least play there for a while, a la Robbie and Roy Keane.