University of Nevada at Reno economics professor Thomas Cargill says the next year or two will be tough, but northern Nevada has weathered grim economic times before.
While southern Nevada's tourists tend to arrive by plane from around the country and the world, the Reno-Tahoe area is more dependent on drivers from Northern California.
Professor Cargill compares the present situation to the economy of the late 1970s and early '80s. He says that was a more chaotic time with 20 percent interest rates and home mortgages above 15 percent.
As recently as a year ago, he says people thought the world would fall apart if gasoline reached three dollars and 50 cents a gallon.
In his words, "It didn't fall apart. It won't this time."