We are'nt heading for a depression by any means...what has happened aside from the normal issues is that some banks cocked up big style as did your state governments who were underwriting new home builds to promote construction....building "new starter" 3 bed detached with swimming pools was crazy...lending 100% mortgages was asking for trouble...now the government has stepped in and bailed out the banks...but all the banks are doing now is working out who to lay off and re-hiring as consultants the disgraced chairmen who put us in this mess...they are'nt spreading the bail out around and lending again for commercial ventures...they are far too risk averse...but soon I expect some of the players in the bank game will change things and decide to get back to making money....roll on the day as far as I am concerned...and other than this recent failure our respective economies are no different to what they were 5 years ago...so I cannot see why a depression would come around for economic reasons.

But allowing for the media talking us into one and people no longer having faith in spending as per usual...well...that is a different issue...we might have problems which are more a matter of "psyche" than "economics"...

Issues like your motor industry...well that has been in decline and under funded for decades... they just spotted an oppertune time to demand "goodies" from your government when they saw the sweet deals the banks were getting....

Our country is very similar with the banks situation...and hopefully things can get better...unlike the depression which was radically affected by a genuine economic post WWI slump...what we have now is just a headless chicken banking Industry...the top shots who got it wrong have'nt been replaced by any seemingly "wiser" heads...maybe they should bring back some of the old hands from retirement...guys who had a pair...and knew how to make sensible decisions...