According to a report in the Wall Street Journal [a paid publication], it looks like the proposed $19 billion buyout deal for Clear Channel Communications, Inc. (NYSE: CCU) is virtually dead (the private equity sponsors include Thomas H. Lee and Bain Capital Partners LLC).

This shouldn't really be a shock. Even though the credit markets have seemed to stabilize, it's incredibly difficult to justify a mega deal. In other words, why would a bank want to further risk its balance sheet – especially for a company that is showing weakness? After all, with the US economy slowing down, this will mean tougher times for ad-based businesses.

It's certainly ugly in after-hours trading; that is, Clear Channel's stock is down 19% to $26.20. Yes, investors have given up on this deal. What's more, it's really a symbol of the state of the private equity market. It's going to be a long time until we see major deals hit the markets.

Tom Taulli is the author of various books, including The Complete M&A Handbook and The Edgar Online Guide to Decoding Financial Statements. He also operates DealProfiles.com.