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“Humor is emotional chaos remembered in tranquility.” -- James Thurber, American Writer and Comedian, 1894-1961.

As teenagers, 30 years ago, we would aimlessly drive around on weekends with no particular purpose except to see and to be seen. Cell phones weren’t around yet so we’d do “drive bys” and check up on friends’ whereabouts. At the end of the evening each of us would chip in a dollar or two and fill up the gas tank before our designated driver returned their parents’ car to the family garage. Miles-per-gallon weren’t a concern and we always paid cash for gas.

Today, credit cards are used to fill up. The sting of gas prices isn’t felt immediately like it would be if we’d pay cash. The amount appropriated for gasoline is a much larger percent of our budgets. Income minus expenses equals savings and there’s not much, if anything, left for savings these days.

We’re in the midst of a classic trifecta of situations wreaking havoc on the U.S. economy right now.

The ongoing housing correction. Many people have borrowed against their home equity over the past several years. Those who used this technique are being forced to adjust their spending patterns. Credit has tightened significantly and home values are beginning to track a more realistic valuation.

The credit market crisis. The Fed cut rates considerably over the past year, but it has reacted to the consequences of a major housing market correction and troubled credit market conditions-not oil. The cause of the increase in oil and other commodities isn’t entirely clear.

High energy costs. Rising global demand is one factor and the weaker dollar is another. According to the CIA World Factbook of 2008, the United States consumes 20.8 million barrels. China, Japan, Russia, Germany and India combined consume 20.3 million barrels per day.

Consider that during all of 2000 the combined population growth of the EU Countries (European Union) was 343,000. During just the first week of 2001 the population of India grew by that same amount of 343,000. Fast forward these numbers and you get a glimpse of where we’re headed.

Higher food and energy prices boost overall inflation. This in turn causes trade-offs in consumer behavior. Right now there’s more concern for keeping jobs than raising wages. Think about it — would you rather be working for less or not working at all?

The job market has softened and there aren’t signs of inflationary pressure (rising wages) from the labor market. There is some need for companies to absorb higher costs because their overall growth makes it harder to raise prices. Meanwhile, profits have been up for many, giving some cushion against higher inflation. These act as shock absorbers for the time being.

Bad times are bad times no matter how it’s labeled. Using the “recession” word to describe the state of the economy is an inevitable and unpleasant part of the business cycle. We’re unwinding from previous excesses.

The definition of recession or whatever it is we’re going through are partly irrelevant. We must act on our expectations for the economy. Recessions often provide opportunities.

I recently learned that the Chinese character for chaos is identical to the one for opportunity. The Chinese who have a symbol for every separate thought and idea chose to use the identical symbol for these two conditions. Most interesting.

Stock prices generally bottom before a recession ends, as the market starts to anticipate an economic recovery. If the last two recessions are any guide, if we are now in a recession, it’s likely to be short and mild. However, the recovery like the rebounds from the 1990-91 and 2001 recessions, may be long and gradual.

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Darcie Guerin is a financial adviser and branch manager at Raymond James & Associates Inc. at 606 Bald Eagle Drive, suite 401, Marco Island. Contact her at Darcie.Guerin@raymondjames.com, 389-1041 or toll-free (866) 343-0882.