Watch Out

And so the games continue: Worry about the damage a growing credit crisis is inflicting on an ailing U.S. economy led the Federal Reserve to make a rare weekend move, lowering a key lending rate before Wall Street opens today.

The central bank approved a cut in its emergency lending rate to financial institutions to 3.25 percent from 3.50 percent, effective immediately,and created a lending facility for big investment banks to secure short-term loans. The new lending facility will be available to Wall Street firms today.

"These steps will provide financial institutions with greater assurance of access to funds," Federal Reserve Chairman Ben Bernanke told reporters in a brief conference call Sunday evening.

We all know who will be paying for it in the end though!

Stocks appear headed for a sharply lower open as Wall Street and other global markets were left reeling from JPMorgan Chase & Co.'s buyout of the faltering investment bank Bear Stearns Cos.
Global markets plunged today on news of the Bear Stearns deal with investors struggling to gauge how much worse financial markets could get.

Oil prices hit a record in Asian trading, U.S. stock index futures fell sharply and the dollar hit record lows.