Bush has already lost both of his elective wars, financed on the never-never, and now he's taking the US economy with him into the abyss.Other people, us included, will pay the price.
If Bush has invested in Halliburton/KBR, Blackwater, the US "defence" industry, and oil, he can smirk. Other people will lose their pensions and their houses, and it will have been a very bad decision to have privatised everything that moves, including education, health and welfare: All we'll get is Victorian levels of destitution and the breakdown of most of the infrastructure as all the PFI schemes fold as well. We could all have spent the trillions on something sensible, or saved them for the future. But next, everyone will cast around for scapegoats.

Julia Iskandar, London, England

The choice is foreclosing and putting thousands of families on the street or protecting homeowners and ordinary investors and letting the speculators/financial institutions go to the wall. Once the fog has cleared and the true extent of the financial industry's losses are known then it will be time to rewrite the rules of banking and investment

peter fieldman, paris, france

The way to resolve the two primary causes of our current crisis is actually quite simple. One is the solution that must never be mentioned or discussed, taking the Private Banks out of the money creation and distribution scenario. 5 Presidents including Lincoln and Jackson used this solution and immediately solved the financial crisis of their eras, paid off the national debt in3 years or so, and in some eras, did away with income tax. The USA has so much natural wealth that if there is a fairer distribution, not a single citizen need be the financial slave of a bank, ever. So, PLEASE, take the 3.5 hours necessary to see the internet film on Google, "The Money Masters." Before you can hit these bankers in the face with the custard pie, you have to learn their methodology, their history, and their motives. Second, search Google for info on the compressed air car and then demand that WE manufacture it in the USA. It is no pollution, 1/10th the cost to run and uses no fossil fuels.

victor compton, Cherbourg, France

Maybe the US needs to call in the IMF (International Monetary Fund)?

It helped Asian countries get back on track in the 1990's.

Hugo van Randwyck, London, UK

Good money after bad. They should know that everyone knows putting a band aid on a wound the size of a continent - will end in tears and deepen the scepticism of investors. They need a radical overhaul of their practices - less emphasis on money, more on people and productivity.

Stephen Pain, Odense, Denmark

The dollar and US stock markets are going into a black hole (as I predicted some six months ago) and taking the rest of the world with them. When the dollar is no longer the world's reserve currency and oil is priced in euros, it's free fall time. When that happens the US will no longer be able to afford its huge military. Way to go, George. Future prediction: Think devolution; Hawaii, Alaska, Texas, Californian West Coast, New England …. Trade deficit? Nothing to do with us.

Andrew Milner, Yokohama, Japan

This is what happens when you try and avoid having recessions at all costs. Low rates blow bubbles which eventually go pop. We got bailed out the last bubble by blowing a housing and credit bubble with low rates. What kind of bubble can you blow now with banks who cant mark to market their "assets" because that would lead to Insolvency. Only time and government leaving the markets to heal themselfs will help.Dont let the guys on Cnbc or the newpapers tell you its a great time to buy, like they did early in the bear market of 2000-2002. Be careful

craig keith, Dundee, Tayside

The US wants a protectionist series of policies to restrict imports, but demands the world buys their goods. It is about time the world starts to seriously realign trade relations that gives the US the isolation it wants. The rest of us can then stop worrying about the US economy or its Smoke & Mirrors style of asset valuations.

Jonathan Mills, Brighton,

Well, duh. - pump money into the 'economy' and the finanial institutions just mop it up and wait for more, while pushing for an interest rate cut, rather than trying to get their own houses in order. Turn off the spiggot and let them sort it out themselves.
In the UK, the banks have already whacked up the rates on the mortgage products to scrape back the cash they've lost - it's our cash, they've lost it, and we're the ones paying for it. Lets have a windfall tax on them next budget.

Poppy, Reading, UK

"US jobs outsourced"

I hear theres plenty of jobs in the US Army, more are wanted to bomb and occupy other nations.

"Interest Rate Cuts"

Unfortunetly even a zero rate won't help the US to growth if the banks don't lend to each other. Don't worry about the Fed as its owned by top Wall Sreet Banks.

Zak, London, UK

This has been coming for some time. Cheap money with no home forced investors into more and more riskier deals. It is the finacial services which need to learn a lesson from all this. Pity its realy the consumer who is going to pay the price.

Richard, Reading, UK

Most people don't have wealth. A house is somewhere to live and a job is where you're at the mercy of the corporation. Trust me, here in the UK we're not like the Germans, where they're now falling back onto millions of euros worth of manufactured goods being snapped up by the new europeans/Chinese.

Greed is exactly what drove the common man/woman into thinking that he/she deserves to be wealthy.

I lost everything due to long-term unemployment so I've been through my personal recession but it doesn't mean I take pleasure in the plight of others - even though it should've been up to them to prepare for a downturn.

Jack, London,

This looks like a race to the bottom, between the fed and the markets. I hope the fed wins.

Costas, Cyprus,

So what will happen when the Credit Default Swaps market failure begins to surface at some unknown point in the future?
There is nothing that can be done now, not via government interventions in any case.....
Buckle up!!!

Lloyd, UK,

From toys to machines, all the hard labour jobs were outsourced to China. Now all the office jobs from accounting to IT are being outsourced to other countries. What is left for US people to work and earn?

Raj, London,

"One sincerely hopes that our pension funds are in no way or means invested in these hedge funds otherwise we have all truly arrived in hell on a hand cart.

Michael Lewis, St Albans, Herts"

I think you will find that pension funds have indeed got exposure to sub-prime and Alt-A asset-backed securities. 2008 is likely to be the year when the skeletons come out of their closets..

Andy, London, Uk

Putting sticking plaster on a gaping wound is not going to help The Fed tried but to be quite honest I think they have spooked the markets and investors even more. Everything will have to find its natural level....much lower before this settles down. Banks will have to give moratoriums on debt as will mortgage lenders to prevent a depression not seen since the 1930's if we are to pull out of this. Everyone is going to be affected. The Chancellor crossing his fingers yesterday was ridiculous, he delivered a budget which will deliver us all to disaster. The only good thing to come out of it will be the end of this Government. Its going to be a long haul

cherry, london, uk

Well it looks as if God didn't like the Idea of the USA being international bully boy Police man after all. I was beginning to wonder what would put a stop to it all and here it is. How many Trillion have the Neo Cons blew and I mean blew literally. The democratic process can't get them out of the middle east but this will. So there is a God after all.

Mark, Gateshead,

It's interesting to see that the same engine that helped the American (and it could be said, world) economy power through the past five to ten years (Private Equity) could now be responsible for it's "collapse".

Hassan Azam, Banbury , Oxfordshire

I know we can just borrow our way out right?

Matt, U.K,

One sincerely hopes that our pension funds are in no way or means invested in these hedge funds otherwise we have all truly arrived in hell on a hand cart.

Michael Lewis, St Albans, Herts

Nice to see all the world economy experts making comments here! why would ditching one currency and moving to another standard change fluctuations driven by market factors, you are just moving the problem to another 'indicator', also of course while dollar owners lose wealth EURO/YEN owners gain wealth when spending in the states, plus what was the last hedge fund a government propped up?

Tony, Maldon,

Why dont we ditch the dollar and go with the Euro or Sterling?

Phill , The Wirral, England

Stop spending tax payers money - let the markets find their new level and then inject funds where it's needed - proper investment, not proping up hedge funds for a few weeks.

Ken Wood, Fleet, UK

These are all man-made phenomena. Why the panic? It's not the end of the world, is it? It's all right to lose some wealth...which to some of us is completely meaningless. It's time to realise that greed isn't everything!

Ahmed Ali, Male, Maldives

Hang onto yer hats boys - this is where it starts getting interesting.

If next weeks US interest rate cut fails, then it's downhill all the way !

Russell, Yeovil,