From the WSJ: Banks in Euro Zone Tighten Lending Again

Banks in the euro zone continued to tighten lending standards during the second quarter amid a deteriorating economic outlook, and criteria could become even tighter, according to the European Central Bank's July Bank Lending Survey.

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"The ongoing tightening of bank credit standards and the further weakening in demand for bank loans strengthens our belief that the euro-zone credit cycle is turning sharply lower," said Martin van Vliet, an economist at ING Bank.

The Fed's July Senior Loan Officer survey should be released soon - and will probably show banks tightened lending standards in the U.S. too.The Credit Crunch continues. And the 2nd half recovery - projected by many economists - has been cancelled. From Kelly Evans at the WSJ: Economists Expect 2008's Second Half to Be Worse Than First . Here is a video of the WSJ's Evans summarizing the article: