Note to Self: Dittmar on Zipf's Law
Yes, It Is a Recession Not Just in Construction and Finance, But in Goods Production too...

Now This Is a Surprise...

Breaking news:

Fed to Offer Bridge Loan to A.I.G. and Take Control of Firm: Updated: The Federal Reserve plans to offer an $85 billion bridge loan to the American International Group in return for control of the ailing insurance giant, people briefed on the matter said Tuesday night.

In an intense discussion at the Federal Reserve Bank of New York on Tuesday afternoon, the Fed and a group of executives from JPMorgan Chase, Goldman Sachs and other firms agreed that a banking syndicate to provide the $75 billion in emergency financing could not be arranged by Tuesday night.

If the Fed intervenes, it would be an eleventh-hour bailout of A.I.G., whose debt downgrades by major credit ratings agencies could have sparked a debilitating need for additional capital.

Concerns about A.I.G.’s health have gripped the financial markets, as many investors feared the insurance giant would follow Lehman Brothers into bankruptcy. An A.I.G. collapse could be an even bigger systemic threat to major financial firms than Lehman’s downfall, because of the company’s dominant position in insuring mortgage-linked securities...

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