Stocks fell apart going into the close. For those watching technicals, we took out yesterday's lows.

So what's the issue?

Isn't the Fed doing everything they can to expand liquidity? Yes.

Didn't Bernanke all but say a rate cut was coming? Yes.

Isn't the Fed setting up a facility to buy commercial paper? Yes.

So what is the problem?

This is the problem: why, even with all this, do I want to own stocks?

"Bob, what will make someone not sell into my bid?," one trader asked. "If I buy right now, all I know is that there is way too much for sale, and I will be nervous every minute I own it...there is only short-term trading in stocks, there is no real investment being done."

What about Warren Buffett and all that good signs stuff. "Warren Buffett is getting a different deal than you and are getting."

• Bernanke: Rate Cut Possible to Cure 'Historic' Slump

The Fed has done everything they can, but we are in very big deflationary spiral. Lowering rates should help reflate. Fed buying commercial paper should help reflate.

But traders are afraid there will be more dying banks.

Look at the European banks again today: Royal Bank of Scotland down 39 percent, Barclays down 23 percent, Lloyds down 22 percent.

Update: Signs of the times. One trader told me he had heard:

1) there were 50 memberships now open at exclusive golf clubs in Manhasset, Long Island thanks to ex-traders from Merrill, Bear and Goldman no longer there. He didn't name specific clubs, but some of the big ones there are North Shore, Fresh Meadows, North Hills, Deepdale.

2) A private high school guidance counselor in Harrison, New York said there were 47 transfers from private to public schools recently. Why? Private schools there are $40,000 a year; public schools are free.

• How Can You Help Mend a Broken Market?

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