Mr. Falcon’s report outlined a worst-case situation in which Fannie and Freddie could default on debt, setting off “contagious illiquidity in the market” – in other words, a financial meltdown. He also raised red flags about the companies’ soaring use of derivatives, the complex financial instruments that economic experts now blame for spreading the housing collapse.

But Mr. Lockhart continued to offer reassurances. In a July appearance on CNBC, he declared that the companies were well managed and “worsts were not coming to worst.” . . . .

There are two ways to market something: the community college way and Harvard’s way. The community college sells education on the basis of price. “It’s the best deal around. Act now!”

I suddenly had a lot of money. I was in my late 40s, and I felt that I was just too old to have it in a plain old bank account. But I was a creative person, not a savvy investor, so I asked around and talked to my smartest friends with Harvard and Wharton MBAs. There appeared to be a secret society of Madoff investors. A friend who was older, wealthier, and more established somehow got me in. I’ve always had good luck, and I thought it was another stroke of good fortune to be invested with the legendary Bernard Madoff.

Every month I got detailed statements, and my money looked to be growing around 9 to 11 percent. It didn’t seem greedy because I knew other people who were making 15 or 20 percent. I thought, “This is just a very smart investor.”

The art market, as everyone pretty much knows, is dead. If I can’t sell my work, I am going to have to find some way to make money.

Since this happened last Thursday, I have barely left my apartment, I haven’t been out for dinner; haven’t bought groceries. Can’t remember the last time I ate a full meal. Food, which is one of my most favorite things in the world, has become meaningless.