Also true is that credit thaw started right after TARP liquidity injection (despite all the political theatre) and had nothing to do with latter developments or lack thereof. Market prices also had reacted to clear anti-business bias and huge deficit spending of incoming Obama administration.
All the big banks have been cash flow positive throughout - the "losses" are all marks and additions to loss reserves, not cash going out the door.
Also correct. Most people don't distinguish between cash flow, free cash flow, operating losses and non-cash goodwill / write-offs losses, especially of the "kitchen sink" variety. All they see are more scary headlines with the largest losses ever. Media (including financial media) is only too happy to amplify it without understanding or explaining any of it to the public, which erodes confidence and creates or amplifies panic. It's a negative feedback loop, which only plays into the hands of politicians who crave the crisis - to exploit for their own purposes.