It’s hard not to report this:
$$$ On CNBC they are saying that AIG has asked the
Federal Reserve for some kind of emergency bridge loans. Can the Fed
lend to an insurance company?
$$$ Federal Reserve is dramatically expanding its emergency lending program. It’s now going to take all sorts of collateral, including equity.
$$$ "Take a very deep breath. It looks almost certain
that this week will be the one where we see the financial implosion in
U.S. banking and brokerage that many have been expecting for some
time," Paul Kedrosky says.
$$$ With Merrill Lynch, Lehman Brothers and Bear
Stearns gone, everyone is asking whether Morgan Stanley and Goldman
Sachs will survive as independent investment banks.
Addendum: Here are Dow futures, at 10:21 p.m. down about 300 points. All things considered that counts as good news.