Many experts still insist the economy is merely in a softening period and a recession is not on the horizon, while others insist the recession is already here. On the stock market yesterday, likely in response to Fed chairman Alan Greenspan's statements indicating a rate cut was not on his agenda before the Federal Reserve meets March 20, the Dow slipped 141.6 points, the NASDAQ slipped 55.99 points and the S&P fell 18 points. The S&P's dip put it more than 20% below its high and the NASDAQ is almost 60% lower than where it was last year at its high.

Malkin, whose family-owned company owns and manages such properties here in Manhattan as 10 Union Square, 1010 Third Ave., 77 W. 55th St., the Gotham on Third Ave., as well as whose family holds interest in the Empire State Building and manages the partnership that owns the Fisk Building, tells GlobeSt.com, "The way we have looked at the cycle to prepare for a recession one must maintain low levels of leverage in one's overall portfolio." He says the industry is "very much a business of cycles and plateaus."

He explains that while he certainly isn't necessarily predicting a recession it is wise to be prepared. "One has to dramatically reduce the level of debt one has." He adds, "I think that clearly it's a smokestack economy. Often when one sees the signs, the fire's already there." He says services, sales and distribution businesses feel the pinch first. "A larger portion of what's happening in the economy is merely the demise of dot-coms, which is not going to spell the end of the service economy. It runs much deeper than that."