Recession

[jeffrey]

How bad could things get? Pretty bad, say many economists. Not so bad that your grandfather’s prescriptions for enduring the Great Depression need dusting off, but nasty enough to force many Americans to get reacquainted with living within their means. That could make life uncomfortable. It may also be an unavoidable step toward purging the United States and the global economy of a major source of instability — an unhealthy dependence on the willingness of American consumers to keep buying even as debt mounts. Concerns that Americans must eventually grow thrifty, leaving factories from Guangzhou to Guatemala City scrambling for buyers, now sows unease around the world.

Trying to Guess What Happens Next - New York Times

[hacik.istanbul@yahoo.ca]

Economically, it is very diificult to evaluate the extent of the financial erosion in the Unites States as a result of subprime concerns however, controling the level of debt and living within our means will go a long way to ensuring personal security. Hacik Istanbul

[jIM_Ohio]

A recession, IMO affects the middle and lower classes more than the upper classes.

Employment is single biggest factor- if people can earn wages, the credit crunch we are in now will have a soft landing. And it should be easy for people to find jobs when needed.

Use of credit will always have problems. S&L situation in the 1980's comes to mind, I read the 1987 crash had to do with derivatives and futures, with people using investment tools to make a quick buck. Real estate in the last 5-10 years had the same atmosphere (flip to make a quick buck).

So the biggest weakness our economy appears to have domestically is the eagerness of the average american to get rich quick.