I admire a man that can admit a mistake!  Last night, Paulson changed his position from absolutely no more bailouts and agreed to extend insurance giant, AIG, a two year $85 Billion loan to prevent it from falling into bankruptcy. The Fed was backed against the wall, as an AIG bankruptcy could result in disastrous effects on the economy. 



The company received the loan from the Federal Reserve in return for a 79.9% stake in the company's stock.  This should allow AIG enough time to sell assets in order to repay the loan. 

Washington Mutual may be considering a merger as pressure mounts on WaMu to raise their capital reserves.

Mortgage interest rates went up a bit today but remain in the high 5% to low 6% range.