@the_patriot09
Although not related to this thread just need to point out something, I think it might be a slight spelling mistake, maybe the wrong words were written?, but it isn't stock markets dropping that is used to define a recession you are right about 2 quarters but it is based on GDP data being negative for 2 quarters, GDP being what the whole country produces through the year.
Although your point on people panicking is right, just an example here. A bank in the UK is called Northern Rock, this bank was nationalised by the Government in October 2007 because people panicked and started removing all their money from the bank meaning it had no deposits leading to it running out of money but also hearing about all the losses it may make because of the amount of derivatives it had amassed i.e. shifting risk from it's balance sheet to another Banks by paying for something similar to insurance, these were otherwise known as the dreaded CDO's (Credit Default Swaps) these were mainly being provided by Lehmann Brothers and AIG (In Northern Rocks case, I think) but because the US housing market collapsed around the Summer in 2007 these losses mounted up for Northern Rock (It was also heavily reliant on wholesales funding, Rich Investors & Funding Groups or even other Banks) which was asked to pay back money quicker than it could which caused the panicking and the collapse of Northern Rock which needed over £30 billion in loans from HM Treasury.
Anyway back on topic
Here is an article that is well worth the read about people panicking from what they hear on the News amongst other Media outlets -
http://news.bbc.co.uk/1/hi/world/americas/8031132.stm
You may have heard that the Mexican Government have sort of closed parts of the economy down for 5 days to just contain the spread of Swine Flu a bit more, the family in this story bought a load of food even though supermarkets will be still open.
In the article it mentions most cases are around Mexico City which they say has smog there most days from the pollution which causes respiratory problems which is the main thing about Swine Flu and how it is described as causing respiratory problems very similar to what happens every year in Mexico City, So we might be able to guarantee that those suspected cases of Swine Flu deaths will probably go down more.