BREAKING NEWS

MAJOR U.S. FINANCIAL FIRMS END FRANTIC WEEKEND, JEOPARDIZE U.S. FINANCIAL HEALTH.

Two of the best known, and oldest names on Wall Street are virtually unrecognizable tonight as new signs emerge that the major errors in judgement that the nation's major financial firms have made are jeopardizing the nation's financial health. Also, a leading insurance provider is nearing crisis mode tonight.

Lehman Brothers, a venerable Wall Street name dating back to 1850, is teetering very close to the verge of bankruptcy, and maybe even liquidation tonight, as several attempts at a buyout are, so far, unsuccessful. The leading contender to buy out Lehman was the major British bank Barclays PLC, but discussions for a deal have fallen flat. Rumors have fired up that bankruptcy discussions are ongoing tonight. Lehman's problems stem from the sub-prime mortgage crisis, and a global credit crunch that has surfaced in recent months.

One of the largest Wall Street names, Merrill Lynch & Company, now will have a new parent company. It was announced tonight that Bank Of America Corp. will purchase Merrill for $44 billion, or $29 per share. The move was pushed by the Federal Reserve, and was reached after 48 hours of frantic negotiations.

Another financial behemoth is facing serious trouble tonight. Insurance giant American International Group Inc., is rushing to sell some assets and overhaul the business, on the threat from Standard & Poors that it might cut its debt rating. CNBC even reports that AIG has gone to the Federal Reserve to ask for a loan. AIG has also been seriously affected by the sub-prime mortgage crisis.

Asian markets are tumbling in Monday trading, and the Dow Industrials look to close down by at least 300 points when trading opens in about 10 hours.

Major Wall Street firms have reportedly loaned out $40 for every $1 in capital they have had. It is faulty to put the Bush Administration, and the federal government at fault for the foolish choices that Wall Street has made. The major financial firms have mostly treated their balance sheets like casinos, and the rest of the country, and even the globe has to suffer for it. Now, the burden looks to shift to the taxpayers, as the government has had to prop up Freddie Mac and Fannie May, and may have to help finance stability of Wall Street.

The actions of the Wall Street firms involved are downright irresponsible, and I will be blunt in calling these choices by them over recent years downright insane. The economy is not to be treated as a casino. I am naturally optimistic, so I know we will get through this. We will have to suffer a little bit before we get out of it, though, I believe.