Despite what bloggers may say or what the government is hesitant to admit, the United States is in a recession and consumers and businesses know it. The latest round of unemployment statistics not only revises the numbers for January and February but also indicates the largest number of lost jobs since 2001. In all 232,000 jobs were lost since the beginning of the year and by most accounts that number is expected to rise.

Though job loss is depressing the prospect of a sagging economy is not enough to shake the resolve of those who've prepared for a long hard winter. Unfortunately the dismal state of financial education means that fewer folks are ready for the hardship and as a result will greatly exaggerate their response to a slowing economy.

It may be irresponsible for the new media to decry the "next great depression" but it's also equally irresponsible to blame the media for our self inflicted psychological condition. What most consumers fail to realize is that while layoffs and foreclosures abound they represent only a small portion of the population. Sure the media hypes the problem, but the fear induced retrenchment manifests itself out of genuine concern over personal finance. A rational person looks that their own personal situation, the prospect of job loss and other factors and makes a decision to scale back spending.

Fools, on the other hand, continue to spend with reckless abandon flirting with calamity and ignoring the warning signs. Unfortunately in the end these poor fools are ones who suffer the most. Just as with the ant and the grasshopper, the fool seeks charity when winter comes. Unfortunately many fools today will find the world of financial forgivingness not nearly as charitable as they expect.

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