Over the past decade (or so) a bubble in the housing market produced virtual equity which was used as a piggy bank in the form of home-equity loans to finance an increase in people's standard of living at a rate far faster than the real-economy as a whole has grown. As housing prices reached a level where starter homes were beyond the reach of well employed individuals and couples with good credit the bubble burst and the long over-due correction began.
Now, unlike previous declines in the housing market, the fall in housing prices has had a similar effect to reducing people's savings and eliminating their access to easy credit. This has left many/most people with two options, live below your means and pay down your debts and wait for the economy to recover, or to declare bankrupcy and be forced to live below your means for several years.
The government rushing an unfocused $7,500/household spending bill through the senate and house so quickly that it can neither be read nor debated does not change the fundimental problems and you will continue to see unemployment rise for quite some time.
