Still wondering: Is the worst over?

Last week, Lloyd Blankfein, CEO of Goldman Sachs, threw his lot in with John Mack, his counterpart at Morgan Stanley, and told shareholders that there was light at the end of the tunnel. That's a view we've been pushing as of late, but it's fair to say there's a lot of cynicism about it. The run-up to this week's earnings announcement from Citigroup and Merrill Lynch seems to have led to some anxiety. No one would be surprised at some big writedowns. In fact, people expect it. Same goes for job cuts. There will be more. The issue is whether we're now at the bottom of the trough. I tend to think we are, though that hardly precludes more pain.  

For more:
- here's a Financial Times article

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