The most tumultuous week in financial market

Sunday, BAC made a bid for Mer. Barclays and BAC left the deal of rescuing Lehman. Monday, Lehman filed for banktrupcy and Merrill was acquired by Bank of American. Market tanked ~5%. The market upheaval is fed by the concern of AIG, the US largest insurer. Tuesday, US Fed bailed out AIG by injecting $85bil to stave off the collapse of the insurer. Market had a small rally. But HBOS, UK largest mortgage lender, became the next victim of credit crisis. Wednesday, Panic gripped world credit markts prompting the biggest flight to safety since the second world war. yet Fed hold rates. Pressure mounted on GS and MS, the only independant investment banks left. Market tanked another ~5% Thursday, Fed pumped $180 bil into global money markets. Market rallied ~4.5%. Friday, Fed banned short-selling, pledged %50 bil to guarantee money market mutual funds, planned to set up a RTC like facility to mop up toxic mortgages from financial insitutions. Mkt rebounced anothe -3.5%