The Economy Will Be Fine
(Fairfax, Virginia, USA)
Across any ten year period (including from 1929 to 1939) stocks in the stock market have never lost value. This is because the economy has a hundreds-of-years-long-trend of bouncing back from depressions and increasing output.
The Obama Administration will come up with forms of financial and real estate regulation, and while not perfect, they will almost certainly be better than the systems of control that were in place under the Bush Administration.
I may have a different point of view because I'm young (18), but I'm much more concerned about Social Security and Medicare than some abstract notion of 'the economy.'
Economically speaking, this is a great time to be young. I can buy an absurd amount of stocks for fire sale prices and make a killing as I get older. I'm sure it really stinks for the millions who have lost their jobs or retirement savings. Hopefully this economic downturn serves as a lesson that we need to save more, spend less, and manage our investments carefully.
As we get closer to retirement it's obvious that we should transition more to inflation-protected bonds rather than rely on the stock market. As for now the government just needs to create jobs and get money flowing again through the economy. Once people have the faith, knowledge, and information needed their individual goals will direct the economy towards a path of recovery.