Economy: a trillion reasons to be gloomy

America's financial television hosts have a new favourite question for their doom-mongering guests: any good news for our viewers? This is normally followed by a pause, then a reference to some dark corner of the financial universe.

After the collapse of the pound last week, Americans can look forward to cheaper trips to England. The plummeting global stock indices have created some real bargain stocks. Reykjavik property anyone?

But really, are there any reasons to be joyful? Or are we all justified in wandering around like characters in a Strindberg play? The short answer is yes, it really is that awful. And unless you have lots of cash, or even better, gold, it is going to be tough.

Britain's economy contracted by 0.5 per cent in the three months to September, the sharpest decline since the end of 1990. In

the United States over the past two weeks, iconic firms such as General Electric, Coca Cola, Goldman Sachs and most of the airlines and car makers announced lay-offs.

Worldwide, $10tr has been wiped from the market value of shares over the past month. Stock markets over the past week were more volatile than they have been at any time since the Great Depression.

America's financial services firms are expected to cut 300,000 jobs in coming months, with 35,000 set to go in New York alone. Fashion journalists are reporting on the rise of 'recession chic' and frugal dressers known as 'recessionistas'. If there's a restaurant in Manhattan you always wanted to try, but could never get a table, now is your moment.

What is perhaps most frightening about this financial crisis is the extent to which it has come all at once. There do not appear to have been any equal and opposite reactions, no rises over here to compensate for falls over there.

Over the weekend, Kuwait's central