The United States’ Federal Reserve has intervened dramatically to cut base rates by a huge 75 basis points or 0.75 percent, indicating that it regards recession as more likely than not. This is the single biggest cut by the Fed in 20 years.

The markets are less than impressed, however, regarding it as a panic measure. The White House has also weighed in with the President saying he is considering an even bigger fiscal stimulus than the recently announced $150billion.

America means business.

Syntagma has an in-depth analysis of the upcoming recession. Here’s a taster :

As we’ve been saying here in Syntagma for some months, a long, deep worldwide recession now looks more likely than not. Opinions are hardening among key players, principally in America and Britain.

Yesterday, the Wall Street Journal proclaimed : “U.S. warning signs point toward deep recession”.

Now even the insurance companies, or Monolines, that underwrite possible defaults, are also in trouble, with two of the biggest in the U.S. said to be close to Chapter 11 status (a form of bankruptcy protection against creditors).

There have been some high-profile security breaches and data losses in the news: banks and other financial institutions losing customer data, stores and retailers suffering data loss through hackers and in some cases, customer data just being thrown away.

Although it isn’t clear if this is a hoax or film of some janitors exhibiting an actual find, a video posted on YouTube has garnered a lot of attention in the news.

In the video, loan applications, account data and personal information on customers are found unshredded in the trash outside a J.P. Morgan Chase bank branch. Last year, Chase was in the news for accidentally throwing out tapes of sensitive data on 2.6 million customers who held Circuit City credit cards issued through Chase.

While the film is being called a hoax and a set-up by the SEIU (Service Employees’ International Union) which is currently trying to unionize security workers, the lesson about safe-guarding personal data is well-taken. Too often consumers themselves will dispose of sensitive bank receipts and credit card statements without first ensuring that they are shredded so that no personal information can be gleaned from them.

Americans continue to lose money to identity fraud and more victims lose more money each year.

Some banks still don’t offer online banking but even if yours does, you may not have used it. If you haven’t availed yourself your banks’ online services, take a look at some of the advantages.

You can access account information, see what transactions have cleared your account, pay bills or transfer money 24/7. Online banks never close. Because you access from a computer, you can check your account online from anywhere in the world. And those transactions that you complete over the Internet are effective immediately.

If you have several types of accounts all with the same bank, you can manage them all with one visit to the bank’s online banking site. Transfer money between checking and savings or money market accounts and the balances are instantly adjusted.

Paying bills online may take some getting used to but in the end is worth it. Some banks charge a monthly fee for this service, others provide it free for certain types of accounts. In the long run you will save money by using fewer paper checks, envelopes and stamps. You can also set up checks to issue on specific dates in the future.

If your bank offers online banking, log into the site and familiarize yourself with the services available. Many sites offer a tutorial. Remember to figure into the balance any financial transactions such debit card purchases that may not go through until the merchant posts them. Keeping an eye on your money can be easier when you look at it through a computer screen.

Think the overdraft protection on your bank account saves you big overdraft fees on bounced checks? Chances are you didn’t bounce a check but you did overspend with your debit card through purchases and ATM withdrawals which you wouldn’t have made if your bank had refused the transaction for insufficient funds.

According to the report, “Debit Card Danger” by The Center for Responsible Lending, most people when given a choice would cancel an ATM transaction or debit card purchase if they knew it would spend them over their bank balance. Although bounced checks account for about 25% of overdraft fees, debit card transactions account for nearly half at 46%.

Fees charged on overdraft protection accounts cost an average of $2.17 for every dollar borrowed. Check overdrafts cost $0.86 per dollar. It’s easy to see that the banks are not saving the consumer high overdraft fees on bounced checks but rather encouraging overdrafts made with a debit card - overdrafts that the customer might not incur had he been warned the transaction would overdraw his account.