Let’s see… Lehman Bros. and Merrill Lynch are now both toast. AIG is asking the Fed for something… possibly a bridge loan. WaMu is looking sickly, and the best news of all is that the Fed is now accepting any investment-grade equity as collateral for loans at the discount window. The big deal with that is that there very well may still be some mortgage-backed securities that are rated that high. Imagine being able to trade a bunch of fetid paper in for cash?
Wall Street is panicking, and no-one is really noticing that oil has now slipped below $100/barrel again.
If you have any cash in banks, I would keep an eye on financial news for some time to come. Even if you don’t have a whole lot, there are reports that the FDIC (the government agency that is supposed to guarantee depositors) may exhaust it’s reserves if a few more banks go belly-up. They can always go to the Fed for more money if need be, but doing that would open up a whole other Pandora’s Box.
We live in interesting times… unfortunately.