You Americans could save a lot of money by changing your defense system, that's for sure. I don't thnk unemployement will reach 12% either. I think double digits is the real question.

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.

Beyond the Housing sector. It seems like this type of crash was inevitable simply through the nature of our economy and spending habits. I mean consumption has to continuallly increase in our economy. So to do wages. On average to continually turn out profits, people will have to spend more every year (hopefully with higher wages) but usually through credit. I blame gross consumerism on the problem and credit.

There are some predatory credit practices like credit cards targeting freshman college students, but primarily it's the American way. I think the scapegoating I've seen recently is a bit ridiculous - blaming deregulation etc. It would have happened eventually since the whole country, from the poor to the rich (obviously not all) spend more than they have.

I think it's the cultural mentality and several commercials reaffirm this idea . Royal Carribeans "Why Not?" - "You deserve it" these memories are "Priceless"

-It's become so ingrained that spending money on frivolous things has become a right, blame advertising or what have you but most of all blame every American that spends more than he/she makes.

http://money.cnn.com/2006/12/21/news/economy/savings_rate/?postversion=2006122114

Shit we could have been two years into (or two years through) what we are going through now, if anyone read the reports and realized that the economy is going to have to transition cause that can't last.

I still want to see details on the stimulus. I think the Republicans screwed it up worse because of tax cuts.

note: I am a repub but I think in between parties.

Well during the Great Depression Unemployment has been estimated to be as high as 25%. I see no reason why this may not happen again. In fact, given the fact now we have a lot larger workforce pool, it may even be worse.

A stimulus isn't going to do jack Sh*t to solve this problem.

We need real action, that actually solves the peoples problem.

What would I do?

Beyond the fact that I think if it gets worse a possible erradication of the debt record (considering the banks just got like what the 4th major bailout in the past 3 decades?) or at least all mortgage debts forgiven. i.e. if you own a title, it's yours now Paid in Full. 700 Billion of our dollors done bought all our houses, F the greedy bastards.
^ but that's just me

1. Reduction in taxes. Whenever they say "tax cut" and "tax break", it's essentially a temporary clause where the tax funding of particular things wont go up in the immediate year. We need a "tax reduction" or "tax elimination". In the state that we are in, the idea of the government taking almost 30% of my paycheck is obscene! It will only get worse people, If this 2009 stimulus goes through, I will NOT be suprised to find out I will have to pay 40% of my paycheck in taxes before Obama leaves office. I have been seriously thinking about drafting a petition whereas taxes levied on the people cannot exceed 10% of their total pay. This would include FICA and State + Property tax.
That should be step 1.

Step 2. 11 + million Illegal Immigrants = gone
Give us your poor hudled masses? Not if you aren't coming legally.
You want to secure jobs for people, well Obama's gotta change his attitude of "allowing them to gain citizenship" AND for the love of god finally start enforcing the laws already in place (that make them illegal), keep them out of the country, and most importantly run a train on any CEOs ass who is employing them in masse. F*** man. Come On!

Step 3. REAL equality in the workplace. GET RID of any College requirement for any job where it is NOT necissary. You don't need a damn 4 year degree to inspect garbage at a flippin incenerary.
I'd like to see Affirmitive action go out the window too, we are all hurting here.

thats a start anyway. I'll add more later if I feel like it.

bad economy brings out the worst biases from everybody. only in america will people spend more time blaming others than thinking about what they could contribute to solving the problem. like, actually understanding what the arguments are that people throw out there. democracy is by a long shot the best system we human societies have tried out so far, but in times like these, i hate the fact that people get manipulated so easily that the bureacrats with the best chance of fixing things won't get to do what they have in mind because politicians have to be representative of their constituents. thank god we finally have a president with above 50% approval rating so at least we have something getting done.

^ /rolls eyes

I don't want to be rude, you are certainly entitled to your opinion, but I disagree. My Opinion is that Democracy doesn't work, and Obama's "approval rating" is a generic alleged statistic that doesn't mean much.

I can agree with the blame game statement and that people are way to easily suckered into believing in the republicrats.

Democracy doesn't work...so should we have a monarchy or what? Communism? Fascism? Just claiming something doesn't work without offering a viable alternative is not very constructive.

Things will get a lot worse before they get better. Lets just hope things get better real quick.

I'm so glad I live in New Orleans. We're in a bubble of sorts at the moment. The recession isn't really affecting us. I think it's because of continuing Katrina recovery, but Gnizmo (a fellow New Orleanian) says we've always been sort of recession-proof. I'm not sure why.