2001 Nobel Prize winner Joseph Stiglitz was on CNBC last week and he appears to agree with billionaire Warren Buffett that this economic downturn, certainly a recession, will be the worst since the Great Depression.

Primary causes are cited as zero savings rate among Americans that is certain to go up, sky high energy costs and the simple fact that consumers can no longer use their home as an ATM; which I personally think is a bad idea in the first place.

Stiglitz cites higher energy and higher food prices both as putting a double whammy on U.S. consumers and the higher oil prices are going to be sending increasing numbers of U.S. dollars overseas.

Further complicating things, the Federal Reserve is just about out of bullets when it comes to fighting this recession. Rates are very low now, and the real rate (with inflation) is certainly below zero.

What do you do?

• Reduce your cost of living
• Increase your savings rate
• Increase your income, with an second job if necessary (you might lose your first)
• Invest in areas that will do well. Subscribe to the International Speculator.
• For specifically energy investments, go with Casey Energy Speculator.

Then batten down the hatches.