Is the crisis bottoming out? Well, we have more pain ahead but the worst may have passed (see the item below). The Fed's action has been bold. We've had a major failure. Now may be the time that things turn up. It may not be apparent immediately, but the writedowns may be less surprising going forward, and banks are really getting a grip on portfolio risks. Some hedge funds may face redemption runs, but people sort of expect that. The real issue is whether this will lead to any meaningful change. You have to wonder if the Goldman Sachs model will hold. Boards may have to get more aggressive abut ratcheting down risk. - Jim