Good afternoon: I was just reading about Wa. Mu. and how they will either be allowed by the Feds. to raise additional capital or be sold piecemeal to the other banks left. What a turn of events! Just a week ago Wa. Mu, along with AIG, claimed they were sufficiently capitalized. I understand why they would say that as no one wants a run and panic in the streets. My question is at the end of the day, will there be anyone left to turn the lights off?
I think there will be. There are some financial institutions out there that are strong (think Wells Fargo, for example) and will survive. The rest of the landscape will consist of mergers and failures at this point. I believe we're near the bottom. After all, what else could fail or go wrong? Now, the recovery can begin. It won't be swift and it won't be pain free, that's for sure. In our industry, the wreckage has been of titanic proportions. It stands to reason it's going to take a while to dig out.
I'm interested in your thoughts on this. I think a majority of people are scared right now. Scared about their jobs, scared about their money, just plain frightened. Our message should be that we will carry on and emerge on the other side better for it. All is not doom and gloom. Every day people prosper. We are a resilient lot and will endure. Have a great day!
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