Investment banks Goldman Sachs and Morgan Stanley converting to bank holding companies today, after an emergency consent by federal regulators is a sign that the two firms were moving rapidly towards insolvency. Congress debating what now appears to be a bailout package likely to rise from the original $700 billion, to possibly trillions of dollars, should the scope of the bailout be expanded to all forms of junk debt purchases, plus mortgage relief.

I am convinced the investment markets will fall significantly further from here, and it is my belief that most of the major money center commercial banks are pretty much insolvent, and likely to fail or be seized.

Plain and simple. This is a mess I figured would eventually arrive after years of cheap money. Consumers are too debt-ridden and can't breath with their bill payments. It will take years to pay off this mess, and the government intervention by assuming the mistakes of the Wall Street rich is only making things worse, not better.

The collapsing dollar should be a warning.

Since the government started intervening in financial markets the situation continues deteriorating. Too much distrust and uncertainty is paralyzing the markets. Soon people on Main Street will not believe anything anyone says. They will instead bunker down and wait for the storm to pass, and in the meantime the economy sinks further into recession.

I have been writing for some time about this meltdown. It is not going away. There is no quick fix. No silver bullet. No magic pill.

The degree of dishonesty and greed to bring on a collapse like we bear witness to today is unparalleled. It must have been a "Whoever dies with the most money wins" thing. The shrewdness of the Wall Street wealthy responsible for conjuring up the investment schemes rocking the foundation of our financial system shocks the conscience.

Why does the CEO of Lehman Brothers deserve $500 million in compensation over 5 years?

Why is Treasury Secretary and former Goldman Sachs CEO Henry Paulson, Jr. opposing compensation caps for CEO's of companies who require federal help to stay in business?

Why did Franklin Raines, former CEO of Fannie Mae, and now Obama advisor, deserved $90 million in compensation and bonuses over 7 years when it was found that the bonuses were linked to false accounting gimmicks?

Federal Reserve lifelines have been extended to the Federal Home Loan Bank (FHLB), Federal Deposit Insurance Corporation (FDIC), Fannie Mae, Freddie Mac, AIG.

Time to buy an extra mattress!!!.