The US, which most economists now agree is on the brink of recession, could be facing a slew of bank failures as a result of the ongoing credit crisis.

“We’re going to have some more bank failures that will come back more to historical norms and may go above that with time,” said John Dugan, the US comptroller of currency in an interview with the Financial Times. “That is a natural consequence of the economy going from historically exceptionally benign credit conditions to something that is more normal to something you would get in a downturn.”

Dugan said the failures could come as a weakening economy puts pressure on badly underwritten loans, particularly in commercial real estate.

There are plenty of bogeymen stalking the US economy.

“Let us assume that the unthinkable happens,” says Marc Faber in The Daily Reckoning. “China’s economy slows down sharply, or even contracts – and there are reasons why it could. Commodity prices slump and bring about economic hardship in the resource-producing countries. Imports of capital and consumer goods from Europe and Japan decline. We would then have the perfect setting for a global economic contraction with dire consequences for corporate earnings and asset prices.”

“We’re not predicting this, says Bill Bonner. “We’re sticking with our middle-of-the-road forecast…for neither worldwide prosperity nor worldwide ruin. But there are risks from both directions. And while most people expect a mild recession and quick recovery…almost no one expects the kind of global meltdown Marc imagines. We could see oil below $50…the Dow below 5,000…Wall Street wiped out…and 20 million US families busted.”