News Roundup – U.S. Economy Continues to Tank, AIG, Stock Market, WaMu, Who’s Next?

Market Drops 450 more points today despite Bridge Loan to Nowhere

O.k – before I roll out the clips, one bit of personal opinion. Two questions. If the Fed’s $85 billion infusion of our money into AIG also means that “we” the taxpayers own 80 percent of the insurer, when can I expect my shares? Second, how many conservative, wild west, 100% free marketers are breathing a sigh of relief tonight that the government is saving one of their sacred institutions? Hypocrites. Is it time to let the market take out the trash in the financial markets? Only if we reasonably regulate to ensure we’re not here again in 15 or 20 years. Isn’t it just great how the so-called ‘Country First’ patriots of the Republican Party have presided over the darkest days for the U.S. economy since the 1920s and 30s …

• Worst crisis since ’30s with no end in sight – Wall Street Journal

• Bailout fails to stem global stock slump – New York Times
• Regulators try to change rules to match need – New York Times
• Morgan Stanley considers merger with Wachovia – New York Times
• Washington Mutual puts itself up for auction – New York Times
• Abroad, bailout seen as free market detour – New York Times
• Banks rush to do deals as Wall Street crisis deepens – Reuters
• Wall Street crisis refocuses U.S. election – Reuters
• Lloyds pulls HBOS chestnuts out of fire for 12 Bn Pounds – The Guardian
• Fear stalks banks – Times of London
• UK unemployment rises to 9 year high – Times of London
• After bailouts, Fed asks Treasury for money – Washington Post
• Russia moves to bolster its banking sector – Washington Post