[narses]

If the credit markets seize and the MTM issue remains, how long before bank runs start?

[af_vet_1981]

If the credit markets seize and the MTM issue remains, how long before bank runs start?

I thought they already started with WAMU.

[Thane_Banquo]

No one really knows anything right now. Big part of credit market tightness are the very big players--JPM, BofA, Citi--restricting credit to force weaker players to accept takeovers for way less than their firms are actually worth. So net-net, more consolidation is going to happen either way, but the chicken-littles are incorrect that the sky will fall. That's not the game that's being played right now by the big boys in the market.

You don't buy WaMu or Wachovia if they are really insolvent to the tune of tens of billions and you are having capital issues as well.

[Revel]

“If the credit markets seize and the MTM issue remains, how long before bank runs start?”

When the FDIC just took over WAMU and gave it to JPM then they wiped out all the bond holders. Even the preferred ones at the very top. This is not normal practice, but it saved the FDIC money. Bond holders in other banks are saying “Hey wait a minute”, and are now selling there bond holdings in other banks. This means banks are losing capital very fast right now. Besides depositor withdrawals.

Every move the government is making is the wrong move. And they have ensured that our economic system is most likely going down big time. The bail out bill would not stop it. Only transfer more pain onto the tax payer. It is another bad move.

Republicans are doing what should have been done a long time ago. But it is so late in the game. What they are fighting for now (I hope still) was the way out. It might be too late. But the Conservative Republicans will not be the blame for that if it is. But they will probably be blamed for it.

God will know the truth.