It will be interesting to see how the entire banking segment copes with this challenge. I am certain nobody quite knows the way out or even understands what is exactly happening. It seems to be more 'hearsay' approach and i hope that they are listening to the right 'experts,' else you might have a stock market like situation where the experts believed that the 'fundamentals' were always strong and the market bullish...Take for example a large ortage company who's chairman believes in going extremely conservative and current internal policies seem to be be more than aligned to this, but goes out giving statements to media that the situation is not as grim as it seems and the media is hyping the entire thing up. Obviously lesser mortals are sure to follow the 'industry leader' in times of hearsay approach and might just find themselves victims of classic corporate spiel. Spreads will certainly be under pressure considering that banks are calling customers to start investing in FDs and also transfer funds from other investments into 'safer' instruments. Corporate and other lending has obviously slowed down. Wonder how they will contunue to maintain high spreads?? the next 6 months will be interesting especially the next 2 quarter results of Banks..