Soon after Microsoft released a patch for a critical bug in its Windows Server software, attack code surfaced, and by Friday afternoon an early sample of the code was out, which led to the week ending on a warning note. That seemed only appropriate for a week that opened with Yahoo announcing deep cost-cutting moves, including plans to lay off at least 10 percent of its global workforce. Between the beginning and the end of the week, former Fed Chairman Alan Greenspan blamed the U.S. economic crisis at least in part on the use of bad data. Perhaps next week will bring better news.

1. Attack code for critical Microsoft bug surfaces and New worm feeds on latest Microsoft bug: It didn't take long after Microsoft provided information about a critical Windows flaw, along with a patch, before attack code showed up. Developers of the Immunity security testing tool had an exploit written within a couple of hours of Microsoft's announcement on Thursday. Although the developer's software is only for paying customers, security researchers said they expected a version of the code to go public soon. That happened Friday afternoon when sample code appeared on the Web. The flaw, in Windows Server service, which is used to connect network resources, was also being exploited by a worm.

2. Greenspan, Cox tell Congress that bad data hurt Wall Street's computer models: Insufficient and faulty data used in risk management models contributed to the financial mess embroiling the U.S. and rippling across the globe, said former U.S. Federal Reserve Chairman Alan Greenspan. Financial firms made business decisions using "the best insights of mathematicians and finance experts, supported by major advances in computer and communications technology," Greenspan told the House Committee on Oversight and Government Reform. "The whole intellectual edifice, however, collapsed in the summer of last year because the data inputted into the risk management models generally covered only the past two decades -- a period of euphoria."

3. Yahoo will cut staff 10 percent or more; Q3 disappoints: Yahoo will lay off at least 10 percent of its global workforce by the end of the year as part of a US$400 million cost-cutting plan, the company said as it reported that its third-quarter revenue rose just 1 percent to $1.77 billion compared to the same quarter last year. Although more than a few people, including Newsweek technology columnist Daniel Lyons, are wondering more loudly why it is that cofounder and CEO Jerry Yang is still in charge of an obviously sinking ship, Yang went with a positive spin on the bad news, claiming that the company is "well-positioned for future growth."

The IDG News Service is a Network World affiliate.