Is it really such a big deal if wamu, lehman, meril, national city become insolvent and go away? I don't think so. The economy is hardly affected by these bank failures. In a free market capitalistic system new bank will come along with better management to replace the distressed ones. The most important banks (bank ofAmerica and Wells Fargo) are doing fine. it seems none of the important financial institutions are affected by this non-crisis.
Banks may lend almost $5 per every $ in deposits (fractional lending). This is absolutely necessary for the capitalist economy to work. From a practical standpoint, most people refuse to take their personal finances responsability. So they look for financial institutions for people who may put their money into work. Banks profit big (even if they don't, they get bailed-out), and savers get peanuts. And that's the way it should be, why they don't accept their own financial responsabilities?