merrill.jpgThe Wall Street investment banking model is being tested. No, it’s broken. No, it’s been broken for a while and the bailout of Bear Stearns and the demise of Lehman show that it’s on the mend…

Views are coming in from across the spectrum as financial world commentators join the markets and try to piece together what the busy weekend on Wall Street will mean for stocks and the shape of the financial services industry.’s voluble Jim Cramer declares: “Nobody from the Fed has gotten ahead of this problem.” How can the Federal Reserve not cut interest rates “right now?”

Market strategist Barry Ritholtz, blogging in The Big Picture , says a cut “would be ill advised … Why on earth the FOMC would want to undue any of the work by Treasury with a rate cut? That is the current market bet, that a 25 or even 50 basis cut may occur at tomorrow’s Fed meeting.” The Fed should keep its powder dry, he concludes.

Arnold King at Econlog says he’s thinking about the Fed simply as the “the lender of last resort” today. He adds: “For the stock market, I’d say if it only drops 3 or 4 percent and stays open all day, I would count that as a win.”