Business Insight Zone

Not to harsh your Friday afternoon, but this sobering piece from David Gaffen touches on several interesting (read: potentially horrifying) connections between the credit crisis per se and other parts of the financial world.

Containment Has Failed

Wrapping one’s arms around the depth and breadth of this credit crisis remains a difficult thing, if only because it seems to require bigger arms every week. Every other day or so, another analyst determines that such-and-such bank will lose exponentially larger sums of money than the last; another economist has a larger estimate of writedowns or losses and how much of a hit the economy will take as a result. . . .

The upshot: could be bad economic times ahead. And once again I’ll repeat my prognosis that we’re a ways from seeing the end of this yet. I think we’re going to see more failures of largish firms before we’re done.