Bankruptcy Woes

It seems that much of the concern about the Obama Administration's plan to prop up the ailing banking sector are well founded. CIT Group has just filed for Chapter 11 bankruptcy protection and will be wiping out current holders of its common and preferred stock. This will most likely mean that the $2.3 billion which was pumped into it last year by the government will be lost. Anyone can see the negativity that this is generating; many are hailing this as the coming of "Round 2" of the recession that has gripped the world.