The Bad News is the Bank Crisis is Over
Bank crisis ends as the economic crisis begins - Telegraph
If the history of financial crises is any guide, the violent credit shock of 2007-2008 has largely run its course. The sovereign states of the US, Britain, France, Germany, Italy, Spain, and Holland have broad enough shoulders to carry their load of fresh liabilities – even if Iceland does not.
We are now moving to the next phase, a grinding slump across the G7 bloc of leading industrial economies as years of excess debt are slowly purged from the system. This is when people start to lose their jobs in earnest.
I'm not completely convinced that the bank system deals will be enough but sense that traders haven't got the stomach for a continued fight. But the bubble has been pricked and there is a lot of hot air to come out of the bloated corporate system. It is going to hurt.
(Quote of the day - from a trader: "This is worse than a divorce. I've
lost half my net worth and I still have my wife.")