I hate to be a pollyanna with so much breast beating but I think the market will drop and start back up. I think the dishonesty is limited to a few high flyers and is not pervasive. The world political situation weighs more heavily in my mind. Soon as we invade Iraq or get Osama, the market will go right back into bull action. Or maybe I am just trying not to deal with the heavy losses we have taken.
My concerns are two-fold: that the dishonesty is pervasive, and that investors will throw their hands up and walk away.
Remember, the 90s boom in the markets were due to little guys like you and me socking away our money in a 401k, i.e. stock mutual funds. When that money leaves the stock funds, for money market and bond funds, there will be little or no money for new issues. That will definitely have a chilling effect on our economy.