Could the U.S. economy completely collapse, yes. Is it likely to happen, no. The FED is doing everything in their power to revive the economy, which should help but will take some time. Also, the economic stimulus package that will be hitting the public in May will also have an impact. Besides focusing on the FED the entire World is a different place compared to the 1920s when the U.S. suffered from The Great Depression. During the 1920s, the U.S. was the only healthy advanced economy at the time, which was the backbone of the world economy. During the 20s the U.S. contributed more than half of all world output, which is HUGE! So when the cash came in 1929, not only did the U.S. fall into a depression, but the world did also. Now, the U.S. still makes up a huge percentage of world output around 27%(as of 2006) but other countries also make huge contributions such as the European Union, China, etc. The U.S. economy is obviously slowing, but at a much faster rate than the world economy because the other industrialized nations are "picking up the slack", which in turn will help the U.S. economy revive itself quickly.