The scale of losses suffered by banks and individuals in 2008/2009 was as dramatic back then as the enormous banking profits we will see reported for 2009/2010.

It defies belief that in a time of unprecedented low interest rates from all central banks, that battered and bruised consumers are still paying virtually the same in interest as they were 2 years ago.

2010/2011 may well be the year that the debt rooster really does come home, because taxes will have to go up, bank interest rates will have to go up and mortgage rates will have to go up;

Good suggestions in your article, but against the back drop that Ive just described, how do you suggest a typical family budget to save 10% of their income when theyre already struggling to get by because of reduced working hours, or perhaps, performance bonuses have been cut back or withdrawn?

Do you genuinely believe that we're being told the facts about how bad the economy is?

Its inconceivable that we are, otherwise a systemic banking failure would be on the cards as people attempt to withdraw their savings from the near bankrupt banks. Yes, I know I said that enormous profits are being made by (most of) the banks, but set that against the gigantic losses that were incurred when the crunch began to bite.

Anyway, maybe ive just answered my own question….

The government is already starting its efforts in solving its economic problems. Americans should also start dealing with their financial problems as well. Budgeting your income is a great way to start this, and this should be complemented by a moderation in our spending habits. An example would be our way of using our credit cards. It feels good to spend with a credit card because you don't actually spend money on the spot. As a result, you might not know how much you're spending already, and when it's time to pay the bills, you'll wonder what went wrong.

Overall, this article is a great read. Great insights.

Great post. Thanks for your insight.