Under pressure from banks and legislators, the Securities and Exchange Commission issued an interpretation of an accounting standard that could make it easier for banks to report smaller losses, or perhaps even profits, when they announce results for the third quarter, which ended Tuesday.

Mark-to-market is another piece of the puzzle. This came up in the Enron fiasco a few years back and as usual, the feds grossly overreacted and as usual, it had unintended consequences.

What I've concluded about our financial system in the wake of this whole mess is that it is far more complex than anyone can really understand. In consequence, the myriad knobs that regulate it must be turned very slowly, over time with careful monitoring on the effects on the system. Instead, what we have is congress twisting all the knobs at once and the system gyrating wildly as a result.