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.