As the global economic crisis continues to dominate the headlines, it is becoming apparent to many of us that this is not just a periodic economic episode. The problem is much deeper than previously thought and many economists are merely grappling in the dark with no rational solution in sight.

We are now in a nail biting situation. A large proportion of people are hoping the economy will eventually reach an equilibrium and every thing will return to normal as we have experienced in past recessions. The reality is that industries are so intricately linked from the stock market right down to the corner shop; we will continue to see many companies folding up. We have to brace ourselves for tougher times ahead.

What we are seeing now should have happened way back in 2001 just after the September 11 attacks occurred and interest rates were lowered to prevent an economic crisis happening at the same time as the terror attacks. Many problems that should have been addressed were swept under the carpet.

This of course gave the financial sector free rein. They became more relaxed with their credit regulations. More and more people who should not have been given credit got on the property ladder. Why should we be surprised now that everything is falling apart?

The stock market has for a long time been operating like one big casino. Most of the decisions made by stockbrokers are based on rumors, fueled by high levels of adrenaline and instinct. There is normally no concrete knowledge that enables the broker to predict how the shares of a company will perform by simply applying the rules of supply and demand. They gamble away innocent peoples investments - betting on future success. This concept of betting on future success is what led to Honda the auto makers pulling out of formula one, the worlds most expensive sport.

For those not particularly keen on motor racing this may not come as a blow but it spells trouble which has been brewing for sometime in the technology sector. The engineers who have helped maintain the formula one team for Honda and have constantly come up with innovative ideas in technology could lose their jobs. This could cause some major derailments in technological advancements.

Just last week, it was finally announced that America is now officially in a recession. This is quite baffling to say the least. Why it took so long for this declaration to be made is beyond me. The United States has been in a recession since December 2007. The rate of public spending and borrowing on the part of the government are clear indicators of a sick economy. There seems no end in sight and it looks like we are heading for more treacherous times.