[Porsche-O-Phile]

Yes. I think the next torpedo to hit the financial sector's hull will be more. . . *ahem*. . . "revelatory" information about the extent and depth of exposure banks like Citigroup, Washington Mutual and Wells Fargo have to bad (or potentially bad) mortgages that are going into default. I really feel like these numbers are seriously understated and it could even force one or more of the big guys into bankruptcy.

Yes, I think it's that bad and no amount of "funny accounting" is going to offset the fact that when people bought houses for way more than they were worth with money they should never have been allowed to borrow in the first place.

People right now CANNOT AFFORD HOUSING (unless you're Wayne), whether they're living in it or looking to buy it. It is way, way, way, WAY out of whack with salaries and historical proportion of household income. Until this comes back into balance, we're going to have very big problems in the financial sector.

Just one guy's opinion, but I think this stuff is all pretty much common sense and gets right down to basics/fundamentals. Somewhere along the line, banks got too "sophisticated" and started basing their behavior on models/analysis that are completely disconnected from the basics.