UPDATE: The Dow is down 800+ as of 3:20 p.m. ET., a record point drop, bringing the Dow to below 10,000.
Investors around the world have come to the sobering realization that the Bush administration's $700 billion rescue plan won't work quickly to unfreeze the credit markets.
UPDATE 2: The Dow closed "at 9,955.50, dropping below 10,000 for the first time since Oct. 29, 2004." When George W. Bush took offiec the Dow was at a little more than 10,700.
UPDATE 3: Whose fault? Guys like Richard S. Fuld Jr., the Lehman chief executive who "conceded no errors or misjudgments in the chaotic period that led to the firm's bankruptcy. And he said a compensation system that he estimated paid him about $350 million between 2000 and 2007 even as the company headed for disaster was appropriate."
Meanwhile "on Sept. 11, Lehman planned to approve 'special payments' worth $18.2 million for two executives who were terminated involuntarily, and another $5 million for one who was leaving on his own." Lehman went under four days later.
Until there is management accountability for downside losses on Wall Street and in big business boardrooms, corporate America is in trouble.