Supposedly the "book value" of Bear Stearns was $86 dollars a share. It sold for $2. I don't think there is any "book value" for financial stocks other than the value of their office furniture (and that may be leased...)
yeah this credit crunch is more probably as serious a situation as there has been since the great depression.
if nobody wants to step up to buy debt because nobody wants to step up and pay their bills then banks of all kind, and financial institution. car dealerships, appliance stores, etc will all get crushed.
i think the thing to remember is that this is not going to be over anytime soon. home values are not just going to start going back up, jobs are not just going to start to be created.
inflation is not going to go away.
the stock market usually reacts first to things that have not happened yet so this maybe the worse. maybe the government will find a way out of this crisis.
but the economic situation is real and it will get worse.