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?

Circuit City lays off hundreds

http://www.inrich.com/cva/ric/search.apx.-content-articles-RTD-2008-11-08-0127.html

Watch the video and read the story. This is being duplicated in town after town in America. China's export business is slowing down and laying off people, too.

The Chinese government has come up with a 586 billion dollar rescue package. The markets in Asia have reacted positively – but I wonder for how long.

http://news.yahoo.com/s/ap/20081110/ap_on_bi_ge/world_markets

http://www.wsws.org/articles/2008/nov2008/chin-n07.shtml

Here in the south of China.I have a question that what are the economists of USA  doing now? AS I know many economists of USA win the Nobel Prize.How could they let the crisis happens.I don't understand.

I will tell you what happen here, China….....

the crisis bothered me, it make me difficult look for the job, and many foreign-funded company started reduced stuff to cut down the cost. so it is terrible that i feel so confused.

i hope the crisis will be over soon.

but what can i do now? i confused that America is the culprits of the crisis, what they want is the world economic is go down for a long time,and then ,they come out as a savior and do nothing . that is america.

so i hope the bush set down as soon as possible and obama will turn things around.

looked at your country seriously, 2/3 of the poor people in your country, i puzzled that why the people so stupid,didn't they realized that they were befooled, they have no much money, no cars , no houses,even can't eat their fill,how can they living without any hope?

Do you really think it is time for China to produce for its own consumption? But,there is a voice say that if the USA imports less produsts or non-import will prevent the growth of China.If so,what do you suggest China to do?

i watched TIME and NY times some days ago. its really a tough time for people lived there. the foreclosure crisis lead to a plenty of mortgages that people cant be able to pay. banks collapsed due to its running out of cash and cant be get payed from lending loans. many of companies dont have enough cash to rebuild their businesses. seems we've seen the shadows of American Recession at 1929.

i think the 700billions bailout plan is quite wise before the crisis hits the manufacturing industry completely. its pretty much the same situation when the financial crisis hited the manufacturing industry without any bailouts at 1929. Paulson got clear ideas about this.

reportedlly, Paulson is gonna be replaced by other four leading candidates for the Treasury Secretary. wish the next one could do a better job.

one thing is this bailout plan is based on the big shareholders and investors which means many of people will loose their jobs with no doubt. incenting their passion to invest sounds reasonable, but it cant be so effective without stablizing people's income, i think.

some of economist said this big crisis was resulted from the highly-flow liquidity. well i dont think so. i think its due to the heavily invested cash or money had exacerbated the envrionment with the original weakness inside the free market, plus lack of some good supervision.

well, from where i live. people who works at some American companies had been anonced they're gonna loose their jobs, too.  i think China hasnt been affected by the crisis yet, but it will come here soon. i even cant imagine what will be happened when it land on China.

just yersteday, the China central government was hard-pressed to say that they will intensify on reforming the corporation tax and add-value tax. another 400billions has been confirmed to reactive the market. but the exchage market keep standing on the low-profile, even sometimes slip into 0. sounds horrible. the policy seems like a combination of "bailout" and "workout".  i cant be so sure.

now, its not the time of 'competition", but a age of " co-operation".

Hello,

I'm nineteen years old and I am from the Netherlands. Together with Germany, America is one of our most important trading partners.

Hello,

I'm nineteen years old and I am from the Netherlands. Together with Germany, America is one of our most important trading partners.