Another eventful weekend. The Morgan Stanley Mitsubishi transaction is being renegotiated but is likely to be completed. Were that to not happen, it would really rattle the markets. Germany has announced a $400 billion bailout of its banks. European leaders are considering guaranteeing all interbank lending.  Clearly there is now worldwide political will to infuse capital into banks in return for a taxpayer ownership stake.    This is  MUCH better idea in our view than buying troubled mortgage assets directly.     

 National governments around the world have agreed to do what is necessary to prevent another major financial institution from failing, the International Monetary Fund's managing director said, although he didn't specify any measures.During weekend meetings, the IMF's 185 member nations endorsed an earlier commitment by the leading industrial nations to "use all available tools" to prevent the failure of "systemically important" financial institutions. Essentially that meant "no one is going to let an important financial institution fail," said the IMF chief, Dominique Strauss-Kahn.