After S&P downgraded the long-term credit outlook for the US, some traders are wondering whether the country is still the best place to invest
Some firms, including Morgan Stanley, race to prove they can fund themselves by turning to private investors.
The bank's struggles suggest government measures have not stemmed market uncertainty.
After 778-point plunge, markets need private investment and bank restructuring for a recovery.
The final tab may exceed that of the savings and loan bailout, depending on the depth of the housing slump.
Risks rise if the Federal Reserve and Treasury move too slow – or too fast.