AndrewBaker

Wall Street Breakfast: Must-Know News

It's unlikely CIT will be allowed to fail now as it would do far too much damage to very fragile sentiment. We're getting more small bank closures, and hearing more about non-performing loans little by little. They're out there, they've not been accounted for yet, and we all know that until these bad debts have been fully factored in, we won't have a recovery; so perhaps the hope is that by slow disclosure the full effect won't be as big as otherwise, and that in the meantime other good news can keep sentiment up. That's what we have now: a market moved by sentiment as much as or even more than by hard fact and numbers.