Is the Worst of the Credit Crunch Over?

In one corner you have the fact that more adjustable rate mortgages are due to reset, the economy is slowing, and home prices continue to decline.

In the other corner you have banks who say that the worst for them is over and next quarter should see a rebound.

What do you think? Who do you believe? Have the banks fully marked down their assets to reflect reality or are there more skeletons in the closet?

Personally, I think the truth, like most truths is somewhere in-between. The worst is not over, financial stocks will remain flat or drop a bit more, but the economy is also not going to collapse.