The demise of a major bank causes a modern depression.

The news that a major bank in America has gone to the wall has been described as something that is reminiscent of the Great Depression. Shares have fallen and it is inevitable that currencies around the world will suffer as a result.

Look out for the side-effects of this as it begins to ripple through the economy which is already suffering as a result of high gas prices and failing mortgages. If you thought we were in a credit crunch, the chances are that things will only get worse unless the world’s leaders and economic giants get together to resolve the downturn in the economy.

How will it affect us?

The economic crisis will have a domino effect as business after business has to fold as can be seen already in some high profile cases. The collapse of travel companies, airlines and other related businesses will most likely have long-term effects on the travel habits of regular holiday makers, with people deciding they can no longer travel abroad as they used to.