These instruments remain hidden with indeterminate valuations both on and off balance sheets of financial institutions around the world. It is these derivatives that have created stresses in the broad economy.

Economic panics and downturns are to be expected in vibrant capitalistic systems. Over the two-plus centuries of mercantilism few downturns have placed such broad and potentially lasting threat upon the total financial system.

It is the potential damage, vast complexity, and massive impacts that concerns the US Federal Reserve, central banks across the world, regulators, as well as investors and speculators.

All rational institutions are intensely involved in formulating and participating within multifarious responses and the potentials that will come to the fore in the near term.

Charles J., OR