(MONEY Magazine) – If the daily reports of economic mayhem have you feeling panicky, you're not alone. According to MONEY's Consumer Comfort index (left) and other surveys, Americans are extremely gloomy about the economy -- maybe too gloomy. It's still not certain there will be a recession (commonly defined as at least two consecutive quarterly declines in economic activity). And even many economists who say a downturn began in the last quarter of 1990 predict that it will be relatively short and mild. The deep slide of 1981-82, for example, ran 16 months and saw the unemployment rate soar 3.7 points to 10.8%. This time, many economists expect recovery to begin in the spring, with unemployment climbing only 1.3 points to 7%. Then why is everyone so jumpy? Economists cite numerous reasons: -- Eight years of boom, which got us accustomed to continuous growth Widespread weakness in housing prices, which threatens our sense of well-being -- The Persian Gulf crisis, which has boosted oil prices -- and the general anxiety level -- Rising taxes, which erode paychecks -- And the S&L debacle and other blowouts, like Donald Trump's public pratfall, which undermine confidence (as in: ''If the slump can dump Trump, what'll it do to me?'') ''There's been such a drumbeat of bad news that people begin to feel worse off than they really are,'' says Allan Meltzer, who is a professor of economics at Carnegie-Mellon University in Pittsburgh. The trouble is, overreacting (as the fictional couple pictured on the previous page have done) can lead you into costly mistakes. Here are some dos and don'ts if you're feeling uneasy: Do postpone optional major expenditures like jewelry or foreign trips. Don't pass up bargains on items that you need as price cutting takes hold. Do trim day-to-day expenses -- like restaurant meals and entertainment. Don't eliminate expenditures that provide spiritual or physical benefits -- like membership in a gym. ''To stop doing the things that are enjoyable and healthy will only add to the stress,'' says Michael Hurst, president of Hurst Associates, a Boston firm that runs employee counseling programs for large companies. Do raise cash. The usual rule of thumb is to have three months' living expenses readily available. Now you might want to double that cushion, gradually. Don't liquidate investments just to increase cash on hand. With prices depressed, you may take a beating if you sell now. Do update your resume and start calling around to get a feel for employment possibilities at other companies if you feel that your job is getting shaky. Don't launch a full-scale job hunt -- or actually switch -- merely because you think there may be layoffs elsewhere at your company. You may end up trading a safe position to be last one in at a company that is soon forced to make you first one out.