Economy collapses. What happens where you live?

In the past few months, the USA has seen many banks close. Most people in the USA don't own their own homes. They buy them with mortgages that they get from banks. Banks lent more money than what people could pay back. Now banks have taken back millions of homes and thrown people out on the streets. The US Treasury and Federal Reserve has just bailed out two of the major lenders by guaranteeing the stock of these companies with more money than the US government really has. This is part of a worldwide Economic crisis that could see every major country in Depression. The US and the world had a major Economic Depression in the late 20's and all of the 1930's. It was a terrible situation. The US and other countries have advanced in so many ways since then. Lifestyles have changed and grown. When the next Depression hits, most people that lived through the previous one won't be alive to tell about what it will be like. 

My question here is: When this Depression hits first in the USA and then around the world, what kinds of things happen where you live? How does life change? What things will you have to give up because you cannot afford them? Will there be more crime and illness where you live? 

Nobody know for sure how bad it will get, but you can imagine and describe different scenes using the questions I've asked as a basis for your story. I will do the same, so you can see what I mean. It is a good thing to think about. Don't you think so?

Here in the Detroit, Michigan area of the USA, the Economy has been hit hard. Detroit was the automobile capitol of the world. Most of the factories closed long ago. Unemployment is high. Many people have lost their homes in foreclosures. Cities are collecting less taxes, so they are firing police officers and other government employees because they can't afford to pay their salaries. 

In the area I'm in, almost every home has a manicured lawn. Either the owners cut the grass or they pay a service to come around once a week to do it. City streets are lined with trees and grass that is also taken care of by city workers or contractors that use foreign labor like Mexicans to do the work. I can already see that due to the Economy, this grass is not being cut as often. Maybe next year, many cities won't be able to afford to keep it up at all! That would be a major change in the lifestyle and culture of this area.

This is first time and first real person from USA shows up us the other side of life in the Great country like USA , i heard about crises in investment in field of real estates in USA.but i think it will be just for sometime.it is not serious problem

My Q will like this : Do you think this economical situation in USA just part of more serious economical problems which Americans have faced in the last days? 

what happens where we live is awful situations..it is silent tragedy !

The Economic problems of the USA affect the world. The USA is the largest consumer nation. The USA imports more products than it creates. When the USA becomes poor, it cannot buy products from other countries. This is called the "domino effect". If the USA doesn't buy products, other countries have less income. The USA's problem then becomes the world's. 

Here's another thing that will happen here. As gasoline/petrol prices increase and people earn less money or none at all, families with 2 or more automobiles will need to get rid of a car or two. This is part of an internal domino effect inside the USA. With fewer cars being owned and driven, businesses like Insurance companies, gas stations and auto repair shops will have less business and many will close. People will not be traveling to shopping malls as much and buying stuff like crazy. This leaving more people unemployed. The homeless population in America could well increase from 3-million to many, many more.

Today Asian currencies fell against the US dollar. The UK Pound is down against the dollar. The US government is working on bailing out yet another bank with some more fake money. What happens next?

A Canadian TV business program had a guest that said Merrill-Lynch and AIG are next. 

How much will this decrease the value of Asian money, the Pound and the Euro?

The Hurricane Ike that has just hit Texas will cost insurance companies millions and millions of dollars. We'll probably see lots of fighting for food and other necessities down in Texas as the money won't come to them fast enough.

Hi worldmikel;

What's about Lehman Brothers? Is expected a bankruptcy tomorrow? Pink monday? Domino effect? What do you think?

Thanks. 

That is also that our eonomic situation in my country. It is hard to face this problem now and then but I believe on controling of government and we will overcome in the future soon. 

Who knows what will happen? Government will print money for their friends in banks and insurance companies? Some of Bush's buddies will get to buy other banks? Some will go bankrupt. Things are not going to really get better, though. It is easy to pass off fake money to people that don't know the value of it. As people become wise, that is when the real problems begin. If the US dollar becomes worthless, imagine what the Indonesian Rupiah or Zimbabwe Dollar will be like! 

In the US, few people look at dollar bills as they purchase or sell things. In other countries, people examine every coin and bill to see if they are fake.

Zimbabwe 100-Billion Dollar Note buys 3 eggs?

Every North American that buys a plane ticket to Indonesia in Rupiah is already an instant millionaire!

Global capitalism failed. Manufacturing shifts towards Asia from developed economies. But it is more than that. As worldmikel puts it, non-qualified labor for public services is also transferred from other countries. And the situation is even worse! As of today, qualified labor can also travel around the world, looking for jobs. The world is on the brink of a break-away.

In my country, there has been no crisis such as mortgage crisis that of the US. Because there is no "subprime" market here. But it has some other problems cause by globalism and that's the consistent decrease of working conditions. The world is getting vietnamized with each passing day in the name of "competitiveness" We must put an end to this crap.

A recession in the US is likely to trigger a domino effect when the US is no more an export destination for emerging markets. What the US is supposed to do to create jobs that they already exported to emerging markets? I think they hold on to the only remaining domestic industry which is "defence" industry. War on Iraq… War on Afghanistan… War on Russia… Poor America

Marxism has to be revitalized

Spain's main index Ibex-35 falls down 4.90% at the moment and WS opens in 20 minutes…

The world is getting vietnamized with each passing day in the name of "competitiveness".

progression can you explain it more clearly..?