Lehman AND Merrill Lynch are done:  NYT

In one of the most dramatic days in Wall Street's history, Merrill Lynch agreed to sell itself on Sunday to Bank of America for roughly $50 billion to avert a deepening financial crisis, while another prominent securities firm, Lehman Brothers, said it would seek bankruptcy protection and hurtled toward liquidation after it failed to find a buyer.

The humbling moves, which reshape the landscape of American finance, mark the latest chapter in a tumultuous year in which once-proud financial institutions have been brought to their knees as a result of hundreds of billions of dollars in losses because of bad mortgage finance and real estate investments.

Apparently Bank of America decided to pass on bailing out Lehman over the weekend, and by doing so, got a deal on buying ML.

Apparently, the world's 18th largest company is in trouble because of it's financial realtionship with Lehman:
NYT

The American International Group is seeking a $40 billion bridge loan from the Federal Reserve, as it faces a potential downgrade from credit ratings agencies that could spell its doom, a person briefed on the matter said Sunday night.

Ratings agencies threatened to downgrade the insurance giant's credit rating by Monday morning, allowing counterparties to withdraw capital from their contracts with the company. One person close to the firm said that if such an event occurred, A.I.G. may survive for only 48 hours to 72 hours.

A.I.G.'s sickly financial health emerged late into one of the most tumultuous days in Wall Street history. Lehman Brothers, the 158-year-old investment bank, is expected to file for bankruptcy protection Sunday night, while Bank of America has agreed to buy Merrill Lynch for $50.03 billion.

It has already raised $20 billion this year. But even that enormous capital raise may not be enough.

I am SO glad John McCain voted to privatize social security. What an economic stroke of genius that would have been.

Venezuela and Bolivia want you to go home: BBC TV

The US government, beloved everywhere.  And thank goodness Sarah Palin can see Russia from that little island off Alaska, because we're going to need her crack diplomacy skills if McCain gets elected: AFP

Russia is also dispatching a nuclear cruiser and other warships and planes to the Caribbean for the joint exercises with Venezuela, seen as a direct rebuff to the United States in the first such deployment since the Cold War.

You'll notice that these stories have been passed over by the US media, who are too busy discussing shades of lipstick.

for today's news bucket, Salon has an article on Sarah Palin's religious extremism.  

The Wasilla Assembly of God, the evangelical church where Sarah Palin came of age, was still charged with excitement on Sunday over Palin's sudden ascendance. Pastor Ed Kalnins warned his congregation not to talk with any journalists who might have been lurking in the pews -- and directly warned this reporter not to interview any of his flock. But Kalnins and other speakers at the service reveled in Palin's rise to global stardom.

It confirmed, they said, that God was making use of Wasilla. "She will take our message to the world!" rejoiced an Assembly of God youth ministry leader, as the church band rocked the high-vaulted wooden building with its electric gospel.

I'm sure you already have an idea what that message is, but go read the rest anyway.

Thought I would pass this along:

Busted! The truth about male decision-making

Noted within the article:

Apparently, this is valid science! A male with a comparatively longer ring finger was exposed to less estrogen in the womb, so, as an adult, he is more of a ticking testosterone bomb.

Those who dance are considered insane by those who can't hear the music. (George Carlin)

Considering the financial news, I remembered reading in April about how Hormones 'may fuel market crises.'

The researchers also looked at cortisol, which is produced in response to stress, and in the case of traders, extreme volatility in the markets.

Dr John Coates, another of the study's authors, said that while ever-increasing testosterone levels might turn risk-taking into an "addiction", the reverse was true with the stress hormone cortisol, which, in excess, causes people to actively avoid risk, potentially worsening the effects of any downturn.

"In the present credit crisis, traders may feel the noxious effects of chronic cortisol exposure, and end up in a psychological state known as 'learned helplessness'.

Those who dance are considered insane by those who can't hear the music. (George Carlin)

AIG thrown $20bn lifeline

US authorities were on Monday fighting a fresh fire in the crisis on Wall Street, throwing a $20bn lifeline to AIG, one of the world's largest insurers, just hours after the collapse of Lehman Brothers and Bank of America's $50bn rescue takeover of Merrill Lynch.

The deal between AIG and New York State insurance regulators allows the company to access $20bn of its own capital in a desperate attempt to stave off a liquidity crisis and credit downgrades.

The move came as fears over AIG's financial health sent its shares into a tail-spin on Monday morning. The stock fell as much as 70 per cent in morning trading in New York to a intra-day low of $3.50 and was trading 47 per cent lower at $6.24 in mid-afternoon.

The announcement by David Paterson, New York governor, is designed to give AIG, whose balance sheet has been savaged by billions of dollars in writedowns and credit losses, some time to clinch a deal to raise capital through a share sale and asset disposals...

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even the governors have been co-opted.

an aside, the share price of K-Y® have soared.

the revolution will not be televised...Peace