It is rumored now that AIG will be saved by the Govt. They are way too big as the final insurer of many swap products. It is argued in the "national interest".
The FED went all in a 12 month of crisis. That's it tapped out. There was no saving for Lehman. Many commentaries try the ideological line of free markets, saying "about time". A trillion of support and we still have free market fairies. They are broke, end of story.
The only good thing today was that sense of capitulation, it is dark everywhere, there is no exit. Something in me says there will be capitulations, with an S, not just one. This too shall pass.
Meanwhile overnight (ON) monetary pays 10%. That's right, 10%. Sign of the times. If these are the death throws of the credit markets, they sure are impressive.
This sub-prime virus, I am telling you!