Lehman Bros. Breakdown

Lehman Bros. stock just fell off the cliff this morning, it's down under $10 from $16 on Friday. It was as low as $8.

I expect we'll be hearing about a bailout over the weekend. Fannie and Freddie are still wallowing around under a buck. There's a very good chance Lehman Bros. will join them shortly should the collapse continue before the Fed's standard Sunday Afternoon Bailout can be arranged.

Reuters has more.

Lehman Brothers Holdings Inc shares fell as much as 40 percent to their lowest level in nearly a decade on Tuesday on growing concern that Wall Street's fourth-largest investment bank would be unable to raise needed capital.

"The market fears that no one will inject capital in the company," said Nick Kalivas, equity market analyst at MF Global Research in Chicago.

A Lehman spokeswoman declined to comment on the lower share price.

Part of the decline came after reports that Lehman's talks with state-owned Korea Development Bank on a possible infusion had ended.

It's just a matter of time now if the talks with the Koreans to save Lehman has fallen through.

[UPDATE] And even MORE good econ news!

The budget deficit will jump by $246 billion to $407 billion this year, the Congressional Budget Office estimates in a report released Tuesday.

Last year, the budget deficit was $161 billion. The government's fiscal year ends Sept. 30.

The agency attributes the jump to "a substantial increase in spending and a halt in the growth of tax revenues."

It just keeps getting better.