Bad timing.

Following on the FDIC's announcement yesterday that it would need $150 billion because of small bank closures, we hear that one of the largest banks in the United States--Washington Mutual--has been seized.  And sold.  Hopefully, JP Morgan Chase's role in purchasing the other giant bank will prevent the FDIC from going under, since WaMu's (at least mostly) insured assets were floating at an estimated $1.9 billion.

With that much money in the bank, why did they fold?  Insufficient liquidity and bad mortages.  

Germany's right: we are well on our way to losing our status as world financial superpower.  Their finance minister thinks that this year heralds the rise of a more multi-lateral world in financial power.  If it were just Western Europe--our nominative allies in the EU--I wouldn't be too worried, but that's not where the money, or even the most stable money, is.  Much of the most stable income is currently in the hands of our oil-producing enemies, making them the potential financial superpowers.

For now.  I don't doubt that we will eventually regain our financial footing in the world, but now's a bad time for us to lose it with everything else going wrong for us.