Financials: Why the Worst Is Yet to Come

this appears to be a logical summary of the status of things

I guess no brainer that they are going to refinance the short term debt into another short or long one, if of course they don't have the cash to pay it out, I am sure there is going to be a lot of bond shoppers flooding the market by september (PIMCO maybe?).

The largest Wall Street Bounuses in 2007, The largest write-offs in 2008. We have been talking about a housing bubble since 2004. What gives?

Why not the government take stake in financial companies the is suffering and change the system of management.Reconstruction in short.Yes it will cost a lot of billions of Dollar probably a trillion Dollar or more.....If it will be the case.......The question is .....Would it be worht...My feeling is yes.......Make it part of a soveriegn wealth or a recovery fund the hit a rock.....Will it be recoverable.... The bottom end is yes.........Like 1929 Bail-out of JPMorgan of wall street crash. This time make history. A history of economic miracle.

BEEEEEEEEEEENNNNNNNYYYYYYYYYYY help me, Geeeeeeeeooooooooorrrrrrrrrrrrgggggggggggeeeeeeeee run off another TRILLION $$$$ on the presses - don't worry the tax payers will take care of it!!! This country SUCKS

why are we listenting these two nobodies??? who the hell are they??? So yahoo! has nobody to interview and put these two idiots here???? that's pathetic... the two idiots' jobs are to interview some people who are twice older than them!!!! not themselves BSing...

I just wonder if Mr Buffett is following his own advice"Be greedy when others are fearful and be fearful when others are greedy"??? From all indications,that I see, he and Berkshire-Hathaway, Have been "slapped" pretty good. I can't see any great moves that he has made, recently. But,what do I know???????Jim

Aaron, I have to take issue with your reference to Wells Fargo as a problem case. All reports I have heard indicate it is not in the mess of others in fact as recently as yesterday there were reports (considered unlikely) that WFC might be a suitor for WM or Wachovia. Overall I agree with the view that financials are still in trouble. While a departing CEO might help investor confidence (are there any real investors left out there?) it might also shake confidence as in "What does he know that we don't?" It can be argued, "You made the mess now clean it up."

Now let's see who Paulson and Dodd take care of.

QUIT??? Who are they going to replace fuld with??? This may be the top firm on wall street with NB, Fixed income etc...whoever picks up this firm and restructures will earn a FORTUNE!!!

The problem for the US is that we have built up debt all over the place that we are unable to afford to pay back. Treasury bonds, individual mortgages, credit cards, you name it. There are only two solutions: 1). The US goes into default 2). The US prints trillions of dollars of money out of thin air in order to bail out bad debt and devalue the dollar sufficiently that the remaining debt has been devalued to the point where we are able to pay it back. Just a wild guess, I think our economic and political leaders will choose option 2. Is option 2 better than option 1? Who knows. Sort of like asking whether death by hanging is better than death by firing squad.

rawledge you are a fool. That statement only applies to sharp investors. Anyone buying financials is a fool. Legend you are exactly correct! These idiots have no idea what they are talking about. They need to interview the few experts who predicted all of this. I agree with the one person who mentioned Stathis' book "America's Financial Apocalypse. I read it a while back and was prepared thank God.

The amount to bailout Fannie & Freddie Mac is going to be huge. I do have to disagree with the person who said this country sucks. You lucky to live in a country where you can express yourself.

Logical analysis!

Financial will tank by end of the year. Taxes will rise. Economy will tank and inflation will reach 7% by end of the year. Once bush leaves office, Oil related scandels wil arise. House prices will collapse, You wont get loan and wages will go down. Dollar will tank, while we are fighting 3 wars across the globe.

all the debts we have accrued are coming due. We have spent more than we have earned, deceived ourselves abou the wealth that was on the paper, not in actual cash in hand. Government policy of spend and spend to prosperity have led us to this point. The excess of spending beyond our means came to collect and more bills are coming due. Due to everyone, especially the US tax payer. We are just one step away from bankrupcy.

Wow ! Talk about a "Debby Downer" assessment. Financial history shows that people get euphoric when indicators are good, and despondent when they are bad -- typically to excess in both directions. Therefore, I will take the strong doomsday tone of your assessment as a paradoxically postive indicator that we're not for from the bottom and should see a turn in the next 12-18 months.

Financials=a mess ,but Euro Ins co have to be worth at least bokvalue with very high "SAFE" yields ........AXA,ING,AEG,..............6% outstanding in VELC will be force to surrender SOON ...........@ $21 to $25/share...................my guess from following VELC since 1969................I also like ITSI.ob @ 54 cents with reported CASh of 55 cents NO debt.....................increasing LOTTO sales ..my opinions

These bobbing smiling heads need to stop being "reporters" roll up their sleeves and actually do some work. I do realize this is very hard to do for them here. So then join the rest of us. Dig in deeper. This (issue) is of utmost importance for the future of our country. We deserve much harder work from you than chit-chat about what we already know!

looking like they are totally wrong. Surprised? Not me. These guys know nothing. Blodgett is the world's greatest sensationalist. His life is a failure!