We're pregnant with #4 - quite a surprise. I had already given/sold most of the baby stuff when my youngest was done with it, (fortunately I did save baby clothes, maternity clothes and cloth diapers!) Not long after I found out I was pregnant, I put out the word to a lot of friends that I was looking for basic baby stuff: crib, carseat, etc and I was surprised by how quickly people offered what I needed!
Between cloth diapering, breastfeeding and the hand-me-downs given by friends - we should be able to make this work even in tough times. I say go for it!