Is the CIT failure a sign of success?

It would appear to be so. It looks as though the government has the confidence to let CIT fail rather than put in place another politically unpopular bailout. The fact that market shave taken the potential failure in stride is a sign that the g the financial system has recovered to the point where markets can be left to work on their own again, at least in this case.

Just breaking on CNBC, CIT may raise $2-3 bln in private equity but is still expected to file for bankruptcy protection tomorrow.