And even worse is AIG failing. From this:
If AIG were to fail, the global ripple effects would be unprecedented, said Robert Bolton, managing director at Mendon Capital Advisors Corp. It has $1 trillion in assets and operates in 130 countries.
"If AIG fails and can't make good on its obligations, forget it," Bolton said. "It's as big a wave as you're going to see."
What does this all mean? It means the S&L crisis of the 80's will look like peanuts compared to this. There is a possibility, and getting stronger, that we are just at the tip of the iceburg as far as bank failures go.
Buckle your seat belts, it could get awfully rough.