The economic outlook has grown so grim that I don't really know how to address it. You could do worse than reading Krugman, though. And Nourel Roubini, too. "This is the worst US financial crisis since the Great Depression," he says, "and the Fed is treating it as if it was only a liquidity crisis. But this is not just a liquidity crisis; it is rather a credit and insolvency crisis. And it is not the job of the Fed to bail out insolvent non bank financial institutions. If a bail out should occur this is a fiscal policy action that should be decided by Congress after the relevant equity holders have been wiped out and senior management fired without golden parachutes and huge severance packages."
