BANG!

The noise you just heard was the FED's balance sheet exploding. S&P down 4%, FTSE down 5, TED spread at 3.5% and the FED is injecting $630B of extra liquidity. 630. Not 25 or 75 or even 200. If the combination of this and the bailout does not work, where is there to go from here?

Update. What bailout? The House just said no. Could this lead to a better structured recap, a la Krugman, or will that have to wait for the Dow to get below 10,000?