The Facts

Trying my best not to fear monger in these desperate and serious times, I am going to do my best to compile some pertinent and indisputable facts and then highlight some of the potential silver lining elements:

Indisputable Facts

• The IMF has activated an "emergency finance mechanism;"
• GM is "liquid through 2008" and at a lower market capitalization than 1929;
• Lehman's CDS are on track to settle tomorrow at 10 cents on the dollar, driving CDS for many other market participants, including MetLife, to 'distressed levels.' Records were set on a significant leveraged loan index.
  
• LIBOR (London Interbank Offered Rate) jumped to a record, indicating the credit markets are still troubled.
• Citi and Wells Fargo discovered Wachovia's books may be worse than originally thought, putting a potential deal at risk:
  

  After burrowing deeper into Wachovia's books, Citigroup and Wells Fargo have been surprised by the concentration of assets they regard as low-quality, these people said.

  As a result, both banks are worried that buying even part of Wachovia could saddle them with steeper losses than previously expected.
  

• Mutual funds witnessed record withdrawals;
• VIX options, arguably the most robust measurment of market volatility and expected market volatility set a record;

Silver Lining Possibilities:

• 
  
  Here is a chart All the Way Back to the Year 1827 that is interesting.
  
  
• Goldman claims the S&P 500 may now be 'undervalued.' Henry Blodget disagrees, though.
• The US Treasury may begin recapitalizing banks directly, possibly providing some respite.