Financial pundit 'Mish' Shedlock shared his economic forecast. He sees America heading into a recession by 2008, brought about by a housing bubble collapse. Jobs associated with the rising housing market have supported the economy, but as housing values go down and fewer new homes are built-- a rise in bankruptcies and unemployment will occur nationwide, he outlined.

Further, he warned that corporations will start outsourcing white collar jobs (such as in advertising and accounting) to India, leading to more unemployment. Shedlock recommended jobs in the health care field, such as nursing, which are in heavy demand and can't be outsourced. He also advocated that people live within their means, and have a savings account to cover one year's worth of expenses.

He offered a number of fixes for the American economy:

• Cut military budget. Pull the troops out of Iraq & Europe and have them involved in security in the U.S. such as at ports. These troops would then be spending money in America.
• Encourage free trade, eliminate subsidies on crops.
• Kill GSE programs such as Fannie Mae and Freddie Mac.
• Change the tax code to a combination of flat & use tax.
• Rework Medicare/Medicaid.
• Gradually raise the reserve requirement of banks.