Merrly Lynch - U.S. Recession already here.

Although nobody really knows what the economic future will hold when a Bank the size of Merryl Lynch states the U.S. is in it's first full blown recession for 16 years people take note.

Employment, income, industry and sales figures are all pointing south and the subprime market in the U.S. is also reflected in the U.K.

With average house prices above 7 x average income property may be hit hardest.

The U.K. had it's first run on a Bank in over 100 years in 2007 and if that is a sign of consumer confidence this year could be the year the excrement hits the air extraction system.

A housing slump - severe enough to tip the entire economy into recession - looks likely. Edmund Conway wonders who will take the hardest hit.