Via Steven Shreve: To prevent a recurrence of financial crises, some call for a return to a simpler time, before derivative securities and the quants who analyze them–a time when investors bought stocks and bonds and little else. Such complaints miss the point. When a bridge collapses, no one demands the abolition of civil engineering. One first determines if faulty engineering or shoddy construction caused the collapse. If engineering is to blame, the solution is better–not less–engineering.

Dow says : Don’t fool me by Rate cut !! The opera continues :)

In one year 55% GDP of US is wiped out by the market ! AND Dow keeps falling like there is no tomorrow 600 point drop Where are we heading? !!!

The Fed lowered its fed funds rate by half of a percentage point to 1.5%. The central bank’s statement said the move was necessary because of the worsening crisis in global financial markets. Link : Rate Cut We are back to 2002 levels of Fed Fund Rate.This is going to be a prolonged period of recovery till 2009 /2010/2011/god knows!!

I shudder to think that it is a vice-presidential candidate speaking!. God save america!