Iceland is bankrupt; the Krona is now worth zero in any currency you can name. So total collapse, while not likely at the moment, isn't really a totally farfetched scenario. I'm still waiting for the credit-card shoe to drop. I think one thing that would help ease things immediately or sooner, is for the Fed to simply start buying all the commercial paper, which is what's really hurting business right now. Ease that up, and the Financial Sector won't take down all the other sectors with it.