Help! Is my 99 Corolla screwed?

I recently got a 99 corolla 4 door auto CE, and seemed to be fine until the last couple of days. The suspension seems really low on the back and the car bottoms out constantly. I just put Winter tires in it, (195/70/R14) and its even worst. But what troubles me is that I noticed this morning that it looks as if the springs in the rear are ON THE TIRES!

Can someone please post a pic of their corolla's rear suspension of the same generation so that I can compare the rear end to see if its supposed to be like that?

Plus, its seems kinda unstable at 100km/h(60mph)+, but I heard that they are like that.

By the way, I used to have a Civic, but it doesn't compare to the power in the Corolla. :-)