Summary
Actual financial shock of the Wall Street will initially have bigger impact on Asia and Europe then on US itself, but on the long run it might set back the US economy to stagnation that could last 10-15 years. Nevertheless, there's still a place for good news and hope in this situation.
Analysis
Respect to recessions of the past decades, in current economy crisis the US are not creditors anymore but debtors, hence the crisis will initially affect actual creditors: China, India, as well as Great Britain and Ireland leading some other European states. On the long run, though, this economy crisis might push the US into stagnation for next 10-15 years.
The basis of actual financial markets crisis is in the fact that since year 2000, the money in whole world is being far more saved then invested. The US banks have 65-75% of world financial equities in the form of money saving, which is used for speculation on financial markets in search for profit out of accounts of others, as in reality hardly anything gets produced. The problem has got worse, as the emerging technology revolution in the area of computers, software and Internet was not too demanding for investors. It appears that we are simply dealing with problem of capital evaluation.
Real business wonder of the momentum is the fact that communist China keeps the US "above the water" loosing by that 10-15% of all their investments in the US. It is also difficult to explain the fact that China and India still continue to invest in the US while consequently suffering huge losses, instead of spending that money in building the infrastructure at home, for example. In fact, China has already announced readiness for vast diversification of their foreign currency reserves onto alternative and not necessarily dollars investment funds.
Good news is that economy crisis of the century will be a local one, impacting majorly the US. Indeed, there's already in place a cash lively economy around so called BRIC core, comprised of Brazil, Russia, India and China.
