So, Barney Frank has been going around saying that the Republicans are at fault for the collapse of several firms in Wall Street and the loss of billions.

Yeah, one small problem with that though. In July, he said that Fannie Mae should be better going forward. Move to his most recent appearance on The O’Reilly Factor, where Bill decided to bring that little quote back up.

Thus, we submit the following without further comment.

Out.

In the face of one of the most dramatic money crises that the United States has ever faced, the Dow Industrial still closed 141.51 points above yesterday.

All weekend we have heard rumors that AIG will join Lehman Brothers, Fannie Mae and Freddie Mac in the long line of moneylenders and investment firms that are both filing for bankruptcy and begging for federal bailout.

“All of the financials are in complete disarray. There is a tremendous amount of nervousness, which is breeding volatility,” said Anthony Conroy, head trader at BNY ConvergEx.

Fox News Reports:

“With the clock ticking on AIG, reports swirled of a possible government rescue of the world’s largest insurer. Bloomberg reported late Tuesday the Federal Reserve is considering a “loan package.” AIG was also boosted after new SEC filings showed its former CEO, Maurice “Hank” Greenberg, is considering a proxy fight for his old company. ”

“No bailout plan was announced before the end of trading and the Treasury Department has not officially changed its plans, leaving AIG in the same predicament it started the day in. Late Monday AIG suffered a major setback when major ratings agencies downgraded the insurer’s credit ratings, making it increasingly difficult to raise cash.”

AIG has officially filed for federal loans and support in this time, and have so far been denied. They claim to have a better case for bailout than either Freddie Mac or Fannie Mae, as their troubles stem not from over extending loans, but from the massive down turn in the economy.

Yesterday, former head of the FED Alan Greenspan referred to this as a “Once a century monetary crisis” further fueling the comparisons to the great depression that began in 1929.

“The enormous swings in the stock market reflect the level of concern and confusion on Wall Street about AIG. Various reports indicated if AIG didn’t raise new capital — it is reportedly seeking $70 billion to $75 billion — it would be forced to follow in the footsteps of Lehman Brothers by filing for bankruptcy.”

In it’s first unamyous decision in over a year, the Federal reserve has voted to freeze interest rates. As well as mandate that the Federal Funds Rate not change from it’s current 2%.

In one ray of bright light for the fininacials in trouble, the British bank Barclay’s has entered into an agreement with embattled Lehman Brothers to purchase control of their U.S. capitals market business, giving the giant some much needed capital. There is debate as to whether it will be enough.