From Global Guerillas:
"As anticipated, the global financial system is now in free-fall. The bankruptcy of Lehman, the government take-over of Fannie/Freddie (essentially, a gov't takeover of the entire US mortgage market), the fire sale of Merrill Lynch (moments before it too went into free-fall), the expansion of Federal Reserve emergency lending into securities (which codifies its position as the only source of capital for big financial firms), the looming failure of AIG (the world's biggest insurance company), the impending failure of Washington Mutual (which will deplete the entire FDIC fund in one whack) all point to tougher times ahead."
"While to many this developing situation will uncharted territory, for those of us that have already recognized the trend lines the roadmap for the next decade is increasingly clear. There will be:
"An acceleration in the decline of the state."
"Widespread economic dislocation."
"Privatization of everything."
9:45 p.m. UPDATE: Asian Pacific markets are down 2.1 - 6.5%.