IT now seems inevitable that there are gloomy times ahead.

The stock market slumps around the world yesterday all point towards a possible American recession.

And if America feels the pinch, it means the rest of us will as the shocks from their economy ripple around the globe.

Predictions of interest rate cuts in the US and UK sparking a rise in share prices simply haven't materialised yet.

Yesterday's FTSE-100 fall was the sixth worst day on record.

But it is still less than half the record drop of Black Monday in 1987 when we saw a 12.2 per cent fall in prices.

There are hard times ahead and many of us have already tightened our belts.

With lending down and the housing market so stagnant, it all makes for dreadful reading.

And, as always in these global situations, there are very few easy solutions.