More from Minyan Peter

Based on what I am seeing, I expect that the next logical step in our [COLOR=blue! important][COLOR=blue! important]credit[/COLOR][/COLOR] crisis will be an acceleration of bank failures, both in Europe and here in the United States, through which national governments will be called upon to provide, not liquidity, but real equity capital.

And Congress, which has until now relied on, to quote former Fed Chairman Greenspan, “the Fed's actions as a wondrous new font of seemingly costless federal funding -- a magical piggy bank," will find itself in the politically unattractive position of authorizing hundreds of billions of dollars to re-capitalize the FDIC and establish this crisis’ equivalent of the RTC.

Then, and only then, will private equity funds, hedge funds and [COLOR=blue! important][COLOR=blue! important]financial [COLOR=blue! important]institutions[/COLOR][/COLOR][/COLOR] step up.

For those still wondering, knife-catching season is now officially closed.