To begin with, the world financial meltdown was similar to the agriculture meltdown in the 1980s. Both were caused by excessively high debt. This time around, however, debt-fueled consumption will now be replaced by thrift. Buying patterns of U.S. citizens will be changed for years to come.

The recession will be lengthy. Unemployment will continue to rise. The housing market may bottom in 2009, but recovery is at least two years off.

There will be a political shift to the left. The public's disillusionment with free markets will result in the pendulum swinging too far in the other direction.

Financial markets will become more heavily regulated. While necessary in some areas, increased regulation will slow economic recovery.

Confidence in the stock market has been shattered. Investors are going to turn toward more conservative investments.

Deflation is the term to be used over the next 12 months and not inflation. Even though more money is being pumped into the economy, the spark to light the fire is attitudes and attitudes are too negative to start spending this money quickly.

Fuel prices are going to stay low. Demand is down and supplies are up. My estimate is that crude oil will be in a trading range of approximately $35 per barrel up to possibly as high as $55 per barrel.