Dot com bubble burst in 2000 and a recessionary trend was seen for almost a year. This was primarily excess growth expectation that was expected in IT that burst. In 2008 however the fundamentals of US economy is hurt. With so many financial institutions going bankrupt, house prices dropping and credit crunch deepening, the problem seems to be more fundamental.
The recovery time may be longer than expected this time as it will take time for us to reach the peak of crisis and then start evening out.
We had lot of small and mid size IT companies going bust in India in 2000. But the IT boom had lasted only for a couple of years then and it had'nt pumped much money in India. Now we have a IT major in a deep trouble state and lot of the future money consumed ( by way of loans) stands at stake.
All those employed would do better ..if they try to keep in cash a minimum of 3 months to 6 months expenses so that they can avoid any panic. Reduction of expenses and spending prudently even if it means switching down lifestyle a bit would help an individual enormously. ( Although this may not help the economy).
Seemingly tough time ahead after we had seen too much of optimism in the past couple of years .