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The rapid increase in consumer savings has become a major topic of contention, and could easily be the biggest headwind facing Obama's stimulus package, and the threat to reducing the near $2 trillion upcoming budget deficit.

The rapid increase in consumer savings has become a major topic of contention, and could easily be the biggest headwind facing Obama's stimulus package, and the threat to reducing the near $2 trillion upcoming budget deficit.

The financial Black Hole formerly known as AIG is close to a deal with the U.S. government that would ease the terms of its bailout, provide a further equity commitment and help it pay down debt, a person familiar with the matter said on Saturday. The revised agreement is expected to include an additional equity commitment of $30 billion. Additionally, per Reuters:

On Friday afternoon Judge Bobby Gerber, who has yet to bitchslap his wife for showing up home late, approved Lyondell's DIP loan, preventing sure liquidation, but likely dooming unsecured creditors to zero recoveries on their claims.

The Tarrot Card Reader Of Omaha (and Charlie)'s Q4 net income fell 96% to $117 million, from $2.95 billion, for a fifth consecutive drop. Book value fell 9.1% of more than generally expected on declines in equity and fixed-income portfolios and writedowns in derivatives. Scary was the increase in liabilities on equity derivatives which increased 49% to $10 billion.

The Friday FDIC bank bailout is becoming like clockwork. Two more banks went under this week, bringing the year's total to 16. The latest victims are Security Savings Bank of Henderson, NV and Heritage Community Bank of Glenwood, IL.

(Please read update 4 for very important additional information)

Rating agencies just love reminding people they are still around.

Rating agencies just love reminding people they are still around.

Developing story: WSJ reports that bondholders, tired of getting diddled by management and the UAW, will show everyone who is boss, and have demanded a meeting with Steve Rattner and his car task force. It was only a matter of time before Rattner would get buddy buddy with his old wall street crowd who will now demand bond security concessions and federal guarantees...

We tend to get accused of being propagators of pessimism porn. We will get you the good news as soon as we see it. In the meantime...

• California announces state unemployment rises to 10.1%
• Citi put on outlook negative by S&P.

Summary from the report:

Or at least according to Robert Prechter, who had forecast the 1987 stock market crash, and is chairman of popular technical research firm Elliott Wave International. It is not like the Legion of Doom really needs any more groupies, but if that's the man's opinion we will take it.

In a piece that would be hilarious if it wasn't serious, Bloomberg discloses that as a result of crushed consumer confidence, more and more Americans are preparing for the metaphorical (and literal) end of days.

"A growing number of Americans are stocking the basement with Spam and
marketable gold, while they peek out from behind the curtains with their firearm