6 months ago, companies were declaring lifetime high profits, mortgages and credit was easy to come by and property prices were showing no signs of slowing down. What a difference 6 months make! The only thing that has changed in the last 6 months is that the sub-prime lending fraud has been discovered and banks have been wrapped on their knuckles by regulators. They've now opted to go to the other extreme of not lending easily at all. This is more than likely to balance out easily as banks start being more sensible with their lending and more money is pumped back to the economy.
Employment figures are still quite good and inflation is being controlled by the government. They can only do so much in the face of rising crude prices (another over-hyped fraud that's likely to melt down to reality soon).
The best thing to do is to keep your head straight while everyone is losing theirs! If you're a first time buyer - buy now and get that deal that may not be around in 6 months once lending pressure eases. If you're looking for a good savings rate or are looking to invest in the market - don't wait.
The conditions that led to the great depression are far different from the realities of today. Our government and the economy is well placed to ride out this tide. We are not heading for a great depression - an artificial depression possibly but nothing that will not be overcome before election time.