I suspect this whole mess will take years until it finally works its way through the system. I blame it largely on the derivatives 'products' of the 1990s onwards, the ballooning of risk as asset prices exploded, lack of regulatory controls and resultant inability to price (and control) bottom-line risk. What is happening has taken a pretty long time to hit the fan but is to a vary large degree, I think, inevitable. Just a damn shame that the fallout will affect the innocent parties (ie. most of us) instead of the spivs in fancy braces who instigated and perpetuated this sham.
The whole mess primed of course by interest rates way too low for too long. Thank you, Mr Greenspan, for that (although he was on TV last night deflecting the blame elsewhere).
From what I'm hearing over here, that insurance company AIG looks pretty damn vulnerable.