Bank Failures: Is There a Best Case Scenario?

Most of the so-called experts have consistently underestimated the fallout from the Great Unraveling.

In the beginning, for example, there was plenty of talk - from central bankers, politicians, Wall Street "strategists," and media pundits - that the losses would be "contained" to a small corner of the lending universe. Of course, those Pollyanaish views were completely wrong.

Then, with each successive wave of bad news - one credit market after another seizing up, the housing market jump-shifting from ski-slope-drop to death-spiral-collapse - those who should have known better kept arguing that "the worst was over." Again, they were clueless.

With that in mind, I feel pretty confident that the concerns expressed in the following Financial Times article, "Regulator fears wave of bank failures" which many might see as extremely troubling, actually represent the best case scenario going forward.