[antpicnic]

How can we help but go through a slow period while households and banks repair their balance sheets? Just increasing the savings rate from the current 5% in January to a more sustainable 10-14% means people will need to forgo a of consumption. I doubt the wheels will fall off completely.

You younger folks on HN have a great opportunity to save your money now and make a killing in 25 years. The stock market could lose another 30% and then move laterally for several years. But over a few decades, you might average 8% returns annually. Just remember to sell out before the great crash of 2049.