One of the commentators in Barron's a few months back noted that in the Bear Sterns Crisis the Fed had the choice of saving the financial system or of saving the economy and it was clear they had chosen to save the financial system.  That they will succeed in saving the financial system is far from clear.  I suspect it is about as subject to salvation as an airliner at 40,000 feet whose wings have both come off.  That they are succeeding in destroying the economy is becoming clearer every day.  About the only thing that is being saved is the capital of their cronies.

 

As the Dutch said while fighting the Spanish: "It is not necessary to have hope in order to persevere."