I'm sorry, but I can not agree with the author. He's focusing on specific ailments such as Bear Sterns and Lehman. If your entire nest egg comprises of only these stocks, then yes, say bye bye to your retirement.
However, well-diversifed funds and portfolios haven't taken on a huge hit in my opinion (anywhere from 2.5% to 5%). Well, it's pretty big for such funds to be sure, but I think it's more than recoverable.
Plus, it's worth noting that strong financial institutions still remain, and chances are good that when the dust settles, they'll be even stronger than ever (from both acquisitions and having fewer players in the field).
But yes, for now, the entire sector is in a heap of mess. Really, it's the long-awaited consequence from all this sub-prime debacle that we've known and talked about for years.
I know I'm sounding bullish, but this too will pass. The storm is finally upon us. We just need to ride it out.
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