A K-shaped economy — one branch of which goes up, the other down — appears to best epitomize the economic reality faced by many Americans this year. It is in many ways a tale of two economies.

Even as some segments of the population are holding up well, others are facing a recession-type environment. Geographically, there now appears to be a notable divergence. According to economist Mark Zandi, around 21 states (mainly rural and industrial ones) and the Washington, D.C. area are currently either in a recession or close to entering one.

Higher income and more experienced workers with relative job security, equity-rich homeowners with paid-off homes or low-rate mortgages, and baby boomers with growing nest eggs are propping up consumer spending. The top 10 percent of households by income

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