Tesar-Reynes

I was talking to a good friend of mine in the banking regulation business. We were smiling over the fact that the Dow had broken 9,000. We were even talking about the possibility of “the boys taking a hiking trip in the Rockies”. I was pretty stoked about some good news. But then I am by nature, an optimist.

After a refreshing positive pause, we started talking about the crunch that is about to appear in commercial real estate. We wondered aloud about whether it would have much effect on the recovery. We decided it would have some, but “not too much”.

I was still in an okay mode until he talked about the fact that, since the banks are not lending the money like they should, and since C.I.T. is on the edge of bankruptcy, that small businesses are having to finance their operations off the owners credit cards. And they are near the cap on their accounts?

How many shoes are left to fall?