Now we are talking - around the world governments step up

After the UK started the round of direct investments into their banks, the US Treasury and Italy step up with similar measures - starting the nationalisation of banks per se. That will stop a lurking run on banks by deposit holders.

The next thing to fix for now is to make sure corporations, especially small and midsize ones, get their cash flow financed again so they can pay salaries and suppliers - the big ones can go to the financial markets,although that has become incredibly tough . Therefore, the unprecedented idea of the FED to open the doors for corporations directly by lending money through commercial paper they buy was the right thing to do.

More rate cuts are needed and will be delivered soon - with the next regular meetings - but in order to turn around the sentiment they need to keep it coming until the dust settles. The big canons need to shoot in batteries to scare away thoughts of panic. Governments have to show they are in command and have the power and will to do the necessary.