This quote from the Times Online just about says it all:

'Interest rates across the world were slashed yesterday as central banks took unprecedented emergency action in an effort to contain the worst economic threat since the Great Depression.....

....The extraordinary level of coordination was designed to demonstrate resolve in the face of financial panic but failed to restore confidence in the stock market. Share prices rallied briefly in London but the FTSE 100 index closed down 239 points at 4,367, its lowest point for four years.

 In its bleakest forecast for years, the International Monetary Fund said that the world was entering a major downturn in the face of “the most dangerous shock . . . since the 1930s”. The US and Europe were either on the brink of or already in recession'.

The IMF's Global Financial Stability Report on the crisis is here. The executive summary of the report is here.  The 'Fund is mainly arguing the case for a much more regulated international financial system and offering its services.

I have been so busy the last few days that I have been unable to focus on the extent of the current disaster, the loss of personal wealth and so on.  The prospects for a prolongued, severe global recession are real.  How things change so quickly!

Amidst the gloom I came across this refreshingly vulgar musical piece at FXH's Lan Downunder by The Saw Doctors.  I've been playing it between meetings and teaching today. Rob Waschik provided me with this delightful insight into the source of the affection displayed by the Saw Doctors towards the Bangles displayed in the FXH clip.  I thought they were pretty good too.

What does this have to do with the possible collapse of capitalism? Nothing at all. Nothing. That's why I link to it.