I have never seen anything like this

I was born after the market crash of 1929 although I remember the depression that followed very well. I remember the market crash immediately after the second world war, the small correction in 1957, the larger correction after Kennedy was elected in 1960, the stock market crash beginning in 1969 and bottoming in summer of 1970, the panic of 1987, and the bursting of the Internet bubble in 2000. However, I have never seen anything that can compare to what happened today.

It's right up there with "I remember what I was doing when we heard about Pearl Harbor." or "I remember when Kennedy was shot."

In the last dozen years or so, Congress has repealed the laws that were passed after the Depression to prevent it from happening again. Then, supposedly smart people created some new derivative investment vehicles - securitized mortgages and credit default swaps in particular - and Congress intentionally refused to pass any laws to regulate them. Wise old men such as Warren Buffett warned that this would lead to disaster.

Well, disaster came. All six major U. S. investment banks have failed and gone into bankruptcy or have been taken over. This week we have seen Washington Mutual and Wachovia fail and be forced into takeovers. Banks won't lend to each other and we are beginning to see runs on banks and money market funds. This crisis has spread throughout the world.

The United States has had the reputation of having the world's strongest economy. Other countries and individuals in other countries buy our stocks and bonds. We created this crisis. However, today Congress decided to do nothing to stop it and went on vacation.