US in 'once-in-a-century' financial crisis

It appears the worst of the US Credit Crisis is unvealing more turmoil. The US government have done a bailout for Freddie Mac and Fannie Mae, while Lehman Brothers have filed for bankrupcy.

Bank of America has agreed to buy Merrill Lynch for US$50 billion. Singapore's Temasek Holdings owns about 13 to 14 percent in the US investment bank, with a total investment of US$8.3 billion.

There is high possibility that more major financial institutions will fall. What is still unknown?

Former Federal Reserve chief Alan Greenspan said on Sunday, "The United States is mired in a once-in-a century financial crisis which is now more than likely to spark a recession. He further add that there is more than 50% chance of a recession.

He said that the crisis was the worst he had seen in his career and still had a long way to go, and continue affecting home prices. The problem has not been resolved and "will continue to be a corrosive force until the price of homes in the US stabilizes".

The US financial crisis will definitely have an impact on the global economy as the US is the biggest economy and if consumers looses the ability to spend, US imports will fall thus manufacturing/exporting economies will suffer, leading to a domino effect.

This crisis IS the worst since the Great Depression. Is there a possiblity that the Great Depression is coming?

(source : http://sg.news.yahoo.com/afp/20080915/tts-us-economy-greenspan-972e412.html)