Drudge had a story today that suggested we were VERY CLOSE to that, and that the recovery of not only our own markets but markets worldwide are largely due to the Fed's action.
That is what I've been reading on financial forums...even in the couple weeks leading up to Bear Stearns. But they are NOT believing all's well even now.....
Investment is always a risk and it should be the responsibilty of the investor for the losses and gains, not the government (taxpayer).
One of the biggest problems this go-round, is that after several trades and package reorganizations to sell, the buyers refused to analyze in detail what they were buying for the most part.
Seems as though there is still a lot of question as I type as to who really owns the properties and who owns the debt associated with the real estate bust, not to mention all the other types of credit related packages.
Seems as though a huge amount of equity was sucked out of the economy building houses that people could not afford, not to mention payment of commissions, bonuses, dividends, etc.