Welcome to Flavor Country
Lehman is allowed to fail as Hank Paulson finally shows some spine. Spooked Merrill jumps in bed with Lothario Bank of America.
Regulator says "no soup for you" to Messers Mudd and Cylon r.e. those multimillion-dollar golden parachutes.
Feels like a good day for capitalism, not the fake "heads we millionaires win, tails you taxpayers bail us out" kind of junk we've had for the past few years, but for the good old-fashioned kind where losers lose their shirts. Unfortunately, that sometimes means some really scary times. I believe we're going to see that now.
What should you be doing? I'm going to say today: you need to be able to sleep.
For my part, I'm going to be dangling short put offers out there, because nothing helps get juicy premiums like absolute panic.