Every year in October the Stock Market has a setback called Black Monday. The reason for this is the pricing has inflated over the past year and all of a sudden the market gets a slap in the face and the pricing goes down to a more realistic value. The economy is now going through a black Monday cycle which has escalated into a giant chain reaction.. Twenty years ago I could buy a Nissan Sentra for only $6,700 but in 2009 you cannot buy one for less than $15,000. A 150% price increase during the last two decades.

Pricing over the last 20 years has inflated and people no longer will pay these prices. The only businesses that will survive are the ones that are able to bring their pricing down and yet stay in business. The reason all the car manufacturers are suffering is because rather than re price their models they want everybody to bail them out yet they want to keep their pricing the same. Look at Ford, if you buy one of their cars and for some reason lose your income then for the next year you will not have to make any payments. Other manufacturers are doing similar things.

Twenty years ago I could attend a small college and pay only about $5000 for a complete 2 year program. In 2009 my wife is attending a small school and it now costs over $20,000 for a 2 year program as a medical assistant. By the time she graduates she will owe over $15,000 just in Student Loans. A lot of manufacturers are now giving away their products to students and the unemployed. Adobe will give the unemployed free software. This is software they normally charge over a thoiusand dollars fort. Microsoft will give up to a 90% discount to students. Sun will give away training to students.

Restaurants that have a dollar menu will be the only ones that will survive the current economic conditions. Starbucks is closing hundred of stores because their pricing remains the same as when the economy was good. The reason Dunkin Donut's and McDonalds is able to survive is because they offer alternatives to people on a budget.