Come on guys, there won't be a huge recession or any kind of depression, that's why they invented the federal reserve. It has several ways to control that sort of downward trend and cutting the interest rates is just one.
Speedfreak - the US is the world's number one producer of capital goods, that means machines like farm equipment, etc. The auto industry is extremely reluctant to completely restructure, which I think is what they desperately need to do. It's a world market and to sit on your hands and ask for handouts from the government (auto industry) is masturbation.
I am not worried that the US will become less of a power than it is, I am not worried that the dollar will suffer from much inflation because there are people who are smarter than god working for the government, they're just the ones you never see.
There'll be a turnaround, but don't miss the bus when it rolls by!