I read everyday that we have hit the bottom of the sub-prime credit crisis.  When I look at the news it continues to be bad.  For example today’s headlines from Bloomberg; “Merrill has Third Straight Loss and CIT Group Has $250 million First Quarter Loss.”

My observations tell me that we are not just in a sub-prime credit crisis.  We are in a recession, we have inflation, customer confidence is low, the credit crisis is world wide, banks are under-capitalized, and corporate earrings are generally lower than expected.Â

In my opinion it is too early to predict light at the end of the tunnel.  I feel a second crisis wave is coming.  This storm will produce bank failures, loss of value in assets including commercial real estate.Â