Do you think that the US is heading to another depression?

I'm not sure if I would use the word depression but I think the US Economy is going to get worse before things get better. And since the USA is the world's largest economy, it's going to bring down alot of other economies down with it.

The main reason for this - subprime and bad debts. The USA has no savings rate and American households and the US government hold too much debt. It's all fine and dandy when things are going well, but nobody can sustain a household on debt forever and no one can sustain an economy on pure debt.

Unfortunately, I think the Fed and other central banks are not doing very much good by pumping money into the system. Although I can understand the logic behind these moves - namely to avoid large scale bankruptcies and panic in the financial markets, it's important to let the financial system clear out the bad debts. Companies that are in trouble should be allowed to go bankrupt and entrepreneurs need to assess risk in a more rational manner. As things stand, most people in the stock market think more like gamblers than investors and as painful as it seems, we got to let the crash happen.

What can the rest of us do? I think the only thing we can do is to conserve our cash and keep our expenses within reasonable limits and reduce debts so that we're in a stronger position once this has cleared up.

That is something that I do not rule out, but I will take one day at a time, when and if that day gets here, I will face it.

not at all, if anything the econimy will go into a recession. but for that to happen then the price of gas and food have to get highenough for pople to stop purchasing anything else but food and gas. and when it does happen the price of oil will have to drop back to reasonable levels.... i say 65$ a barrel would be around that mark....... before the econimy will get kickstarted again..... plus we will be dragging the rest of the world with us