Do you still think it’s business as usual for banks?

Are you still keeping your head in the sand about the coming recession?

This collapse of the western credit-based economy was predicted by r. Lin, founder of Ultimate Entrepreneur 15 years ago. The credit freeze began on August 1 and banking institutions are still feeling the shock waves and fears that something worse is to come.

Banks expected to be witnessing a temporary summer credit freeze, ending in September and with limited financial consequences. However, the last few weeks have been different and the crisis is turning into something much more damaging.

Big banks have already written off £50bn of losses linked to credit markets, and UK bank Northern Rock sank to the brink of collapse, along with the biggest US mortgage lender Countrywide Financial and IKB. from Germany.

The mood in the markets is turning much bleaker, with major banks being forced into a second wave of writedowns. Citi announced another £6.4bn loss related to the subprime crisis, Merrill also revealed more losses and HSBC has a potential £45bn loss on its balance sheets. Barclays also wrote off £1.3bn.

Future expectations are that Citi will write down another £15bn and the Royal Bank of Scotland is expected to announce subprime losses of over £1bn.

City analysts have estimated that total losses related to subprime mortgages could reach a whopping £500bn. That’s going to hurt all of us!

Incredibly. Federal Reserve Chairman Ben Bernanke initially estimated the losses at £50bn. Way to go Ben! And he is in charge of the American economy!

This problem is likely to affect other types of US debt, credit cards, auto financing, and unsecured loans.

Especially when you consider how financial markets have managed debt in recent years. Mortgages, credit cards, and unsecured debt were bundled up and sold to investors around the world. No one really knows where the pain is until the bombs go off.

The climate of fear has hit bank stocks and it has only just begun. A UK banker predicted it was going to get much worse.

Mortgage approvals are falling as the market crashes under the pressure of higher interest rates and the credit crunch.

It’s not just the bankers who are concerned, but also those who run the economy. Bernanke has warned that the US credit crunch has affected the US economy, indeed how could it not?

In both the US and the UK, food and oil prices were pushing up inflation, while turbulence in financial markets tightened credit conditions. IMF chief economist Simon Johnston warned the world was facing a “perfect storm” of a 1970s-style oil shock combined with a 21st-century credit crunch.

The alarm has sounded for the US economy as fears mount that house prices will fall by 15% and, in some states, as much as 30%. Goldman Sachs sees a 40% to 45% chance of a US recession.

It’s going to be harder to get loans as banks hoard their cash, harder to pay off the loans, credit cards and mortgages we have as interest rates rise higher and higher, and as the economy falters and stalls, jobs will be more difficult to secure.

How deep will the US housing recession be and how long will it last? What is the effect that the US crisis will have on the UK and European markets? How bad is it going to be?

Don’t wait to find out, start planning your own survival now.

Clean up all your debts, try the Ultimate Entrepreneur debt cancellation program. You can learn more at [http://www.wealthfreedomfighters.com].

Earn more money, start a home business or take a second job, but bring more money home.

Put your money to work for you by investing in key utilities that never lose value.

Try to put your money in currency of value, do not hoard dollars, pounds or euros. Swiss dollars are always a good bet.

Start preparing now and you will be ahead of everyone else when the critical moment arrives, don’t leave it too late.