Recession Or Depression

At what point does falling wages, job losses, rising interest rates, declining stock market and rising food and fuel cost become a depression? Companies are downsizing, reducing it's work force, closing production facilities.

At what point do small investors panic and sell their stock and bond holding? How much does a companies stock have to fall to trigger this sell off? As home values continue to depreciated at a rate of 15 to 25 percent a year, at what point does a person allow his real estate holdings to go into foreclosure? A $250,000 home is now valued at $175,000 but your still making mortgage payments on a $250,000 dollar mortgage. When do you decide to cut your losses and default on you mortgage?

Income is dropping, purchasing power is declining. Fuel, heating oil and propane has doubled in cost, food and electricity is up by 30 percent. Does this qualify as the start of a depression? Maybe we should stick our heads in the sand like our government and call it a recession, that sounds much less threating.

Are you as tough and resourceful as your grand parents and parents? Can you and your family survive a prolonged recession or depression? What will you do when no one in your house hold has a job, no income coming in? Sounds far fetched but, many families are just one pay check away form being homeless! It is estimated that 3 in 5 families are in just that finical position. It is estimated that 8 in 10 families do not have enough cash and savings to be unemployed more than 4 weeks and still meet mortgage, credit card, utility and auto loan payments.

This is not just an American event, this 'recession' is a world wide event. All it will take is one industrialized country to falter and that will drag the rest of the world into a world wide depression that may last for decades. The so called great depression started in 1927 /1928 and did not end until the United States entered WWII, December 1941.

Are You Prepared For Such An Event? If not, you should be looking very hard and making hard decisions 'Now' to protect you and your family.