Getting Ready to Tighten My Belt

Well, I wondered when all the media hype about the economy might actually come to affect the real jobs of me or my friends here in the DC area. I generally find that my startup company and its potential is too great to listen with a fearful mind to the nightly sensationalism on the news... *But* I just heard my first real non-sensational confirmation of some real technology company related problems hitting my friends.

A friend just called to tell me that he hasn't been paid by his (mostly non-profit) customers in a month and he's having to pull their web sites down to get their attention now. He sees the potential of being left holding a big bill owed to his vendors if he doesn't get paid for his tech work soon. So he's working on 3 resumes (he has CIO experience) to go to back to work for someone else after years of being in business for himself.

So this has me wondering... if he's feeling the squeeze here in DC among his non-profit customers, how long until the rest of us start to get hit in our own jobs? Does an economic squeeze usually hit non-profits first? Does anyone know? I've heard that luxuries (like boats) also take a big hit during a recession. Is that right? Anybody know?

QUESTION: Do you see any threats to your job or a possible "belt tightening" coming up? Are you worried? Where are you investing? Have you pulled your money out of the stock market?