Are we in a recession? if so will it lead to a depression?

Question

facts: stocks,and the housing market are plumiting...

: just this morning the 2nd biggest bank closed in history (am i right?)

: gas, food, and unimployment are sky-rocketing

Answer 1

yes, we are indeed in the middle of a recession. depending on how we handle this situation will determine whether or not this will end in a depression.

Answer 2

we have the potential to lead into a depression. right now we are in a recession but there are no indicators that things will get better anytime soon unless some major changes take place. stocks keep dropping, unemployment is increasing food and gas prices are high, and yes, indymac failed which is the biggest bank failure in history. there will be other banks to follow. this is not just from the mortgage/subprime mess, but also becuase so many middle class americans are being squeezed now and are struggling to try to make ends meet. More and more people now are late with car payments and on their credit cards. many people bought stuff they never could afford without credit and not they are struggling.