At the last minute the Fed decided to bail out AIG (American International Group) (the 18th largest corporation in the world), who also owns AG (American General a life company that itself formerly owned Wilmington Finance, and UG (United Guarantee) the Mortgage Insurance group. The Fed now owns 79.9% of the group. This morning, fixed income investors who typically move to buy MBS have been moving their sights to Treasuries this morning, in a flight to quality as MBS have really been negatively impacted by headlines such as Lehman, AIG MBS portfolios, etc, showing that the crisis is still here and very much alive. This is a great example of why you can't follow the 10 year anymore. The 10 year is down to 3.397 and mortgage rates are UP. Looks like MBS are showing signs of improvement so we will see how today pans out. Today the crystal ball is foggy. Currently we are off about a quarter in price from yesterdays last re-price, but still holding strong under the 6% mark for the 30yr fixed. Oil is currently up almost 3 bucks at 93.89 - Dow is down just over 243 points.
Lehman brothers is also in talks with some very aggressive investors about taking over part of their assets, therefore being able to still employee almost 6000 of their employees.

Expect the markets and news to be a little shaky these next few weeks as investors adapt to what is going on and eventually they will start to see the light at the end of the tunnel... This is a good thing!!! Information courtesy of: Mike Yancey/Loan Officer.