So Lehman Brothers just filed bankcrupt.

Lehman Brothers declared bankruptcy Monday and Merrill Lynch announced a rescue sale in a series of dramas in the US financial system which hit European stocks as soon as trading began.

The stunning fall of Lehman Brothers, one of the highest profile investment institutions, came after a frantic weekend marking a dangerous new chapter in the financial crisis sparked by failings in the subprime home-loan market.

And rumors has it AIG is next…

AIG asked the Federal Reserve for a $40 billion bridge loan after rejecting an offer from J.C. Flowers & Co. that would have given the buyout firm an option to acquire the whole company, the New York Times said, citing an unidentified person. AIG may get access to the Fed’s borrowing window in an “extreme liquidity scare”

It’s already desperately selling their assets, so there must be something going on. Things are going insane. I can’t imagine being in a world without AIG…