Those are probably the three best words to describe what is happening to the economy not just in the United States but around the world. This will no doubt change the very nature of the election in the coming weeks as both of the candidates economic plans face new scrutiny and the job awaiting the next president grows that much more difficult.

First Some Resources from the BBC

GLossary of the Credit Crunch | Timeline Global Credit Crunch | The Blame Game |

Here is the latest happening today:

- Mark Knoller at CBSNews asks Who Will Bail Out Uncle Sam?

In fact, the government doesn’t have the $85 billion needed to bailout insurance giant American International Group.

The treasury department announced this morning it would auction new debt to raise funds for the Federal Reserve’s rescue plan for AIG.

Meanwhile Marketwatch argues that the FED still has “firepower” as Bloomberg reports the “The Treasury is selling $100 billion in short-term debt to enable the Federal Reserve to expand its balance sheet.”

- Bloomberg reports on the latest potential casualty of the mess, campaign promises by both the candidates:

Those expenses, on top of a 2009 budget deficit projected to approach $500 billion, will make it hard for Obama to find money for universal health care, clean energy and early education, or for McCain to enact $3.3 trillion in promised tax cuts over eight years.

- Asian Stocks have hit a 3 year low, the Russian market has been closed after losing 17.5% of its value in one day (almost ten years exactly after the financial crash of 1998 & Financial Times reports “Panic” has gripped the world markets while gold hit a 26 year high.

- The Economist gives its view on the origins of the crisis.