Yea, so we're in a recession. Life goes on.
I don't know why the markets are so afraid of hearing "The 'R' Word" or heavens forbid, "The 'D' Word". They're just classifications of a broad economic picture. Individual results will vary and whatever happens, people are going to go on with their lives. The voodoo, "ooga-booga" emotional/irrational aspect of the markets is always confusing and frustrating. I guess it's like women that way.
It's not like we haven't seen this coming for months, if not years. If people either didn't know that this was going to be the inevitable consequence of the lunacy in housing or didn't prepare for it, they sort of made their own bed, no?