Bond prices fell sharply as investors worried a bailout of Fannie Mae and Freddie Mac could dent the government's credit rating.

(emphasis mine)

That's an AP report. The GOVERNMENT'S credit rating??? This whole thing looks about one to two steps from 1929 free fall. Buckle up.

Paulson: No Bailout For Fannie Mae and Freddie Mac

The forecasts calling for a jump to between $7 and $10 a gallon are based on the view that the price of crude is on its way to $200 in two to three years.

Translating this price into dollars and cents at the gas pump, one of our forecasters, the chairman of Houston-based Dune Energy, Alan Gaines, sees gas rising to $7-$8 a gallon. The other, a commodities tracker at Weiss Research in Jupiter, Fla., Sean Brodrick, projects a range of $8 to $10 a gallon.

Think this would be a good time to rework public transportation? Just maybe?

Gasoline May Soon Cost a Sawbuck - April 28, 2008 - The New York Sun

Judges in at least five states have stopped foreclosure proceedings because the banks that pool mortgages into securities and the companies that collect monthly payments haven't been able to prove they own the mortgages.

Remember the subprime mortgage mess? Guess what, it just got incomprehensibly worse.

Banks Lose to Deadbeat Homeowners as Loans Sold in Bonds Vanish

Now -- the Republicans have created a meter on their website to track the increases in government spending. You guys ran the government for 6 years. You had complete control. YOU GOT US INTO THIS MESS IN THE FIRST PLACE. SHUT THE HELL UP.

Stewart is very good at breaking things down, here's his latest installment of what sort of hell the GOP has stuck us with for eternity, and what it means.

Hale "Bonddad" Stewart: Obama's Economic Plan is Unworkable

Citigroup (C) awarded Chief Executive Vikram Pandit $26.7 million worth of shares and 3 million stock options six weeks after he took over the largest U.S. bank, and a week after the company reported a record $9.83 billion quarterly loss.

It's the new version of "heckuva job Brownie!" Lose $10 billion, get paid $25 million plus! How can I get that job?

Citigroup CEO gets $26.7 million in stock, 3 million options - USATODAY.com

In effect, the entire economy is going through a process of reevaluating "the greatest story never told" and are discovering it wasn't that good a deal to begin with.

Stewart is really great for getting an understanding of what's going on. Lot's of charts to show you visually what's going on along with simple explanations for what they mean, and then a straightforward tying up of the whole thing. I don't have a degree in economics, but I know the subject well enough to identify bogus arguments, and this isn't that. His prior articles do a good job explaining many parts of the current problems in nice digestible chunks.

Hale "Bonddad" Stewart: The Illusion of the Bush Economy's Growth is Revealed

Today's declines in Asia were even more severe than those yesterday, and several markets hit multiyear lows. Indian shares plunged so quickly -- nearly 11 percent -- that its stock markets halted trading soon after opening. In South Korea, volatile futures prices prompted the main Kospi market to briefly suspend program selling orders at midday. The Australian market suffered its worst one-day fall ever, while Japan's Nikkei fell 5.65 percent to its lowest point since 2005. It is down nearly 18 percent this year.

In Hong Kong, the Hang Seng index was down 8.65 percent today, after dropping 5.49 percent yesterday. It's off 19 percent this year and is 30 percent lower than a peak in late October.

"This is an expression of panic -- really nothing less than panic about prospects for the U.S. economy," said Stephen Green, senior economist with Standard Chartered Bank.

Free-fall. On October 9, 2007, the Dow closed at 14,164.53, it's all time high. This morning, the Dow opened at 11,830.88. That's down 17% in the last 14 weeks. Without this morning's move by the Fed, we probably would have been looking at the same things the overseas markets saw in the past two days, and given the problems in the US economy (the subprime disaster and the credit card crunch just for starters) this is going to get a hell of a lot worse before it gets better.

But don't take my word for it, here's Mort Zuckerman of U.S. News and World Report, "You’ve heard me say here I think we are facing the worst financial crunch and crisis since the Great Depression." The full text of that can be found here. And he's just the tip of the iceberg.

Fed Cuts Key Interest Rate as Asian Markets Drop for Second Day

Since the start of the year, Japan's Nikkei index has declined 13 percent, while Hong Kong's blue-chip index is down more than 14 percent. Even China's Shanghai index _ which nearly doubled last year _ has fallen 6.6 percent over the same period and nearly 20 percent from its all-time closing high on Oct. 16.

As previously noted, 1-800-RUN is now in effect. It's time to party like it's 1929.

Stock Markets Plunge Worldwide - Business on The Huffington Post

Workers' wages failed to keep up with the higher inflation. Average weekly earnings, after adjusting for inflation, dropped by 0.9 percent in 2007, the fourth decline in the past five years. The lagging wage gains are cited as a chief reason many workers have growing anxiety about their economic futures.

We're making less money. This isn't much of a shock to most people, but it sure seems to be to the people making money policy.

Gas, Food Spur Inflation Jump in 2007 - Business on The Huffington Post

Merrill Lynch is expected to suffer $15 billion in losses stemming from soured mortgage investments, almost double its original estimate, prompting the firm to raise additional capital from an outside investor.

That's Billion, with a B. 1-800-RUN.

Giant Write-Down Is Seen for Merrill - New York Times