Nate, when I hear the words paradigm change then I usually try to listen hard and do the opposite:-) In this case I would completely agree with you, we need less leverage and financial institutions to be far more responsible.

The problem is being SMART and avoiding the unintended consequences especially when we can't sit back and wait months. A small example, how about preventing foreclosures and not throwing people out on the street? sounds good like apple pie but could it lead to more people giving up on their mortgages? if i had a mortgage and was struggling then i would be tempted as i understand that in the US you can walk away from a mortgage.

As to rabbits, yes no end to what can be dreamt up.

Lehman collapse puts hedge fund in dire straits: Short-seller Copper River should be in its glory in a market like this. Instead, it's fighting for its life.

NEW YORK (Fortune) -- September was arguably the worst month in hedge fund history, as unprecedented volatility in the capital markets forced once-mighty investment managers to book losses that had been thought unimaginable.

But for noted short-sellers Copper River Management, a $1 billion hedge fund based in Larkspur, Cal., the month turned into a perfect storm.

A devastating combination of counter-party failure, sudden regulatory edicts and margin calls conspired to turn the fund's performance on its ear, leading to a 55% loss in just two weeks.

According to people familiar with Copper River, the fund's management has sent out a letter to its investors in an attempt to explain the crisis and to retain enough capital to keep operating.