pslf, pdff and it goes on. but there is method to the madness and i will highlight three precepts that guide our thinking. the first is insurance. don't put all your eggs in one acronym. the second is innovation. this is not your grandfather's fed. and the third is size. in an environment of great uncertainty, as we like to say in chicago, make no little plans. i will discuss each of these precepts in turn before concluding with some thoughts about the return to traditional policies. >> ok. on insurance, to understand the first precept we have to remember the diversity of risk that emerged in the past two years, and the speed at which they emerged. each risk was a challenge to our mandate of fostering sound financial system, stable growth and price stability. indeed, diagnosing each risk raised difficult questions. we saw failures in parts of the financial system. how serious were they? and how would they affect the rest of the economy? we also saw economic activity begin to deteriorate significantly. how deep