It seems to me that we are heading toward a recession. I have a few questions I would like someone to address.

1. Oil prices are over $90.00 but gas prices do not reflect this increase. Why?

2. How bad is the banking system?

3. How does the average middle class person maintain his standard of living, i.e. two SUV’s, two children in high school, large house note, high gas prices, etc.?

4. When will the deflation of house prices be reflected in the stock market?

5. When or if all of the above create a Bear Market?

I would really appreciate some feedback for I am at a lost. I am only 20% invested in mutual funds and have been slowing moving out of the stock market during this year. I am retired and have been decreasing my risk but do not like the poor 4.5% return but at least I’m not loosing money.

Thanks,

James

I think that most of those questions are a matter of perspective. Many people are screaming about the U.S.'s Problems, meanwhile others are simply relaxed and are just dealing with it.