Whoops!

I'm no economist, but to paraphrase the immortal (not even in the Schuylar Colfax sense) Sarah Palin, I've had money so that makes me a freakin' economics expert. Therefore, as a newly ordained economist let me say this sure seems like it's going to be bad:

According to people briefed on the matter, Lehman Brothers will file for bankruptcy protection on Sunday night, in the largest failure of an investment bank since the collapse of Drexel Burnham Lambert 18 years ago...

But wait, that's not all:

Because of the harsher treatment that federal bankruptcy law applies to financial-services firm, Lehman cannot hope to reorganize and survive as a going concern. It will instead liquidate its holdings...Moreover, changes to the bankruptcy code mean that counterparties to Lehman’s credit-default swaps can seize their collateral at any time, posing an enormous potential risk to the entire financial markets. Investment banks, hedge funds and other financial players labored throughout Sunday to offset their exposure to Lehman, moving their contracts to other firms.

But now how much will you pay?

Ten of the world's big banks have kicked in 70 billion into a liquidity fund, not to buy Lehman but to shore up the market tomorrow.

Hey, that's like six-months in Iraq!

ACT! now, before it's too late!

American International Group Inc CEO Robert Willumstad turned down a private equity infusion and turned to the Federal Reserve for help, the Wall Street Journal, citing people familiar with the situation, reported Sunday.

Why should a capitalist rely on capitalism, when capitalism is so mean to them?

The American International Group is seeking a $40 billion bridge loan from the Federal Reserve

Wait a minute, that's about three and a half-months in Iraq.

Financing for all these months in Iraq doesn't just grow on trees you know.

[stops, checks Google to make sure this is right]

Let me rephrase, we need to save those trees for Iraq occupation money only!

Remember, if you call today, they'll throw in a genuine set of ginsu seppuku knives!

This uncomfortably high-chance of financial collapse is brought to you by the folks who are John McCain's economic advisers, truly.

[cross-posted at Firedoglake]