Oh boy.. could the past week get any wilder?  First, Lehman Brothers reportedly will be filing bankruptcy sometime in the next 12 hours due to failed talks between LEH and suitors.  The Fed tried to broker a deal between LEH and Bank of America / Barclays, but talks fell through at the end due to the Fed not wanting to bank some of LEH’s toxic paper as was done with JPMorgan and the Bear Stearns mess.

Lehman Brothers, R.I.P.

On the flip side, Bank of America has offered to buy Merrill Lynch for $29 / share, or close to a 75% premium over Friday’s close.  Talking heads are saying MER was the firewall holding up the rest of the financial system and with BAC’s purchase, the transaction has helped to offset some of the instability from the LEH mess.  BAC’s on a takeover tear.  First Countrywide and now Merrill.  Anyone worried BAC may end up turning into another Citigroup?

Futures right now are pointing toward a 300 point lower open tomorrow.  Asian markets are closed due to holiday (Autumn holiday?).  Personally, my portfolio is split evenly:  6 calls and 6 puts.  Hopefully my puts actually fall because I know sure as hell my calls are going downhill tomorrow!

Keep your battle gear by your bedside because tomorrow bulls and bears alike will fight the epic battle.