The sovereign wealth funds have lost a few hundred billion from the money they put into banks over the last 8 months. Banks are just eating capital up to cover writing off loans and losses on derivatives.
Darling is about to set up £200bn fund to prop up the banks again.
The falling oil price is hitting the Arab and other oil producing countries.
This crisis will run and run and run.
There is second run on all the UK banks and the US has had to pump another $600billion into Citicorp and bank of America.
The government is also drawing plans to extend the bailout pot by another $800 billion.

Ireland has had to nationalise Anglo Irish bank as losses from loans to property speculators escalate.
They are likely to have to go to the International Monetary Fund to fund this and other rescue plans as they are finding it difficult to sell the now low credit rated Irish government debt on the financial markets.
The difference between Iceland and Ireland? One letter and one year!

This is a likely trend in 2009: after the banks it will be governments that will be going being bankrupt. Countries on the periphery of Europe are most at risk: Ireland, Iceland, Latvia, Estonia and Lithuania.

But the UK is at risk because of the Banks exposure to recession.
Their losses are likely to be unlimited.
Brown and Darling want to take this debt on our books – the UK tax payers and people.
This essentially transfers the liabilities from the banks to us. We may have go to the IMF by the end of 2009 or start of 2010. The UK to will find it difficult to sell its debt on the international markets as the UK’s credit rating plummets as it is seen as having the largest credit and housing bubble and will suffer more than the other major economies.

2008 was just the warm up to 2009.
Expect to see huge turbulence on the financial markets with further massive falls in assets prices from shares to houses. The recession will bite hard with a massive increase in unemployment, corporate and personal bankruptcies and attempted large cut back on public spending.
There will be an all out assault on working conditions and pay rates.