I just heard that Morgan Stanley and Goldman have changed their status from investment to commercial banks in order to move away from highly-leveraged assets. The face of the financial sector is changing completely before our very eyes.

Yes, it's true!

Do we have any other investment banks left?! With this pace — I doubt there will be any left!

This is really a "brace yourself" moment: higher mortgage costs, taxes and unemployment will be with us for years.

This is really a "brace yourself" moment: higher mortgage costs, taxes and unemployment will be with us for years.

Well, I don't know about taxes, come to think about it. The latter depends who gets into the WH -- although I'm sure Obama will be looking at tax breaks in order to jump-start economic activity.

And this "moment" has been more than 3 years in the making. The economy has been overheating forever. The housing sector has been in recession for more than TWO years! The subprime mortgage market collapsed last August 2007. And only now are the talking heads running around talking about "the economy in crisis"? Come on.

We can blame the financial sector for all these problems, but the fact is, Wall Street is only a part of the problem. Households fell into serious debt first -- hence the home market collapse.

Edited September 22, 200817 yr by Cat

Oh, Cat, but that's a whole new discourse! I'm not talking about that, this is just the last call for all those who were in denial to wake up.

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