mbeard, it is not the subprime that is dragging the world into recession. That problem is only a symptom of falling house prices. If house prices were still rising, or American wages were increasing there wouldn't be a subprime crisis.
The efforts of the Fed to perpetually inflate asset prices have failed because they have not been able to get wage inflation moving. American wages are deflating in real terms, which is why people cannot afford their mortgages after the rate rises in the US from 1% back to 5.75%.
I have no fear as to what will happen, but I think you might consider some facts, and spend some time considering how they will impact your own situation.
