Are you prepared to live in Your Parent's Basement?

Its been awhile since I posted so I owe you 2 posts:)

Ok, so the title is a scary thought to most of us, and I won't say that the picture I am painting applies to all, but there are some reading this or others you know that will be experiencing this reality soon.
The Economy
Watching the news lately is painful and everyday it seems to get worse.
Two days ago it was about the stock market dipping below 7,000 points. Today, two stories are dominating the news. First Citigroup's stock has fallen under $1 per share, which considering their 52 week high was over $27, is simply ridiculous. Citi has its hands in so many pies, the destruction of this company would have consequences that are hard to imagine.
GM was also in the news today. An accounting firm basically said that there survival is doubtful the way they are going. Bankruptcy seems likely, the company ceasing to exist is a possibility.
What does this mean for Housing?
If any or most of these things come to fruition it means job losses. It means foreclosures. It mean bankruptcies. This is very good news for the financially stable as they will continue to be able to buy homes at prices that seem way to good to be true. But where do the jobless and homeless turn? Mom and dad might be the answer.
Mom and Dad, can I come back?
Most of us would never dream of having to move back in with our parents, but for many in America this is becoming a reality. A sad, terrifying reality for many, or at least an embarrassment for most. It is tough to "fail" and have to go back to the place where you were taken care of as a child, only to have to be taken care of again.
In other cultures this is actually not that big a deal. Many people live with their extended families to save money and it is considered somewhat normal. A crowded house to some is a good thing.
The larger question that should be asked is why do I no longer own my home and my parents still have theirs and in many cases it is paid off?
The answer lies in a generational shift that has occurred from our parents to us. Debt was frowned on more when our parents were originally buying homes. Banks actually wanted you to put some of your own skin in the game (they are getting back to this now.) Once they were in them, they stayed in them. My parents have lived in the same house for 30 years. The generation before them was even more removed from us today. My mother grew up in a household of 7 people with one bathroom and about 1000 square feet. People made due, they got by somehow.
Today is different. We need BIG, we need a room and bathroom for everyone in the home. When we can't pay for things we charge them and hope for money tomorrow to pay the bill. What happened to us? When did enough not become enough anymore?
The reality is I think this country has spent its way back into how things use to be. I am sensing a shift in thinking towards small is okay and big is unneeded.