” The United States must engineer a new transparent, non-partisan, “systemic-centric,” economy-oriented regulatory apparatus that facilitates innovation in capital formation, product efficacy, public protection and open, fair and equal market access.”

“I have a funny feeling that we’re not in Kansas, anymore.” Like Dorothy’s sublime observation of the surreal in “The Wizard of Oz,” our taking stock of where we are in the vortex of this economic tornado leads us to the same scary observation.

Wall Street bankers create products like any other manufacturer seeking to sell goods or services for a profit. The products those bankers create are financial instruments and the services they sell include advisory services, which they provide to investors and use to sell their financial products. And being the shrewd businessmen and women they are, Wall Street’s bankers also make a habit of being both buyers and sellers of their own products. All the better to serve their customers who wish to trade their products.

Once upon a time, generous-minded social engineering resulted in the Community Reinvestment Act, which forced banks to lend to disadvantaged borrowers who otherwise couldn’t get mortgages to buy homes.

No one person is responsible for the credit crisis, the failure of investment banks, the insolvency of commercial banks world-wide, the implosion of the world’s stock markets, or for leading us to the precipice of another great depression.

If there’s a proverb that captures the outlook for the U.S. economy in the New Year, it’s the one that says: “It’s always darkest before the dawn.”

Underlying the credit crisis gripping the U.S. and world economies is a crisis of confidence. Blame has been laid at the feet of the U.S. Federal Reserve, and an investment bankers’ brew of toxic financial products. Ultimately, however, it was the supposedly trustworthy rating agencies that got everyone to drink the poisoned Kool-Aid.

The brutal market sell-off in emerging markets has led many to doubt their importance in the global economy. But Horacio Marquez says the ‘right’ countries in Latin America will thrive in the New Year. Top of the class is Brazil, but Horacio also sees good opportunities in Chile and Mexico.

The once booming business of private equity faces an uncertain future. What’s not uncertain, however, is that many private equity deals are imploding from the weight of leveraged debt and greed. Inevitable bankruptcies will result in higher unemployment and a deeper recession.

If there’s a proverb that captures the outlook for the U.S. economy in the New Year, it’s the one that says: “It’s always darkest before the dawn.”