How to cope with the next recession

I expect the next recession in the USA to happen in one year's time, maybe in 2008.

If it happens, it will affect the rest of the world. We will feel the impact.

We should take the economic cycle in its stride, and not worry too much about it. When the economy is slow, we will have more leisure time, and time for the family. We can adjust to the slower pace and wait for the economy to recover. We can draw down on our savings.

If we have mortgage payments, we need to work out some arrangement with the bank to defer the payments. If we have some spare savings in the CPF, they can be used to pay the mortgage installments.

Many centuries ago, most people were involved in farming. In good years, their keep some of the harvest. They draw down on the stock during the bad years, eg drought. They accept the cycles are part of the farming life.