The economy is going down the crapper fast.  Over 70K jobs were cut in a single day!  Check out the article at NDTV

It is definitely starting to hit home too.  I know several acquaintances that lost their jobs last week.  Plus, I know several teachers who were already told they won't have work next school year.

What the heck do we do now as young graduates?

Ever thought about doing freelance work, sites like have plenty of postings for skilled work.  If you don't think you have the skills for free lance work.  Check out their article about 100 things to hire for free lance Top 100 Jobs You Can Elance

That's right, 100 different ways to make money! 
Just pass a few tests (should be good at that or definitely would not have made it through school) :)
Figure out what you are good at and start bidding on projects, not much else to it.  Even if you are in a job, this is a great way to supplement the wallet.  Build your skills and if you find something you are only decent at, but want practice, bid cheap, explain the situation and you and the customer will both be better

Image courtesy of the Library of Congress (LOC) via Flickr