[MarkT]

This does not bode well for the marketplace but at least the shareholders of Bear Stearns got wiped out. Maybe, Glass Steagall was not so bad after all.

We are careening toward a 'too big to fail' environment; investment banks (and major money center banks, also) are going to have to substantially bolster their capital. Also, FNMA and FHLMC are going to have to raise enormous amounts of new capital - stop paying dividends.

The high-flying bankers get their bonuses with no recourse and the tax-payers end up holding some "really sophisticated securities" worth probably 60 to 70 cents on the dollar.

[Attention Surplus Disorder]

“The high-flying bankers get their bonuses with no recourse and the tax-payers end up holding some “really sophisticated securities” worth probably 60 to 70 cents on the dollar.”

Considering the dolllar itself is likely to be only worth 60 to 70 cents on the dollar, I applaud your optimism!