Washington Mutual, the giant lender that came to symbolize the excesses of the mortgage boom, was seized by federal regulators on Thursday night, in what is by far the largest bank failure in American history.

Americans’ anger is in full bloom, jumping off the screen in capital letters and exclamation points, in the e-mail in-boxes of elected representatives in the nation’s capital. 

“I am hoping Congress can find the backbone to stand on their feet and not their knees before BIG BUSINESS,” one correspondent wrote to Representative Jim McDermott of Washington. 

The Queen and the Government are locked in a secret dispute over royal demands for increased public funding to meet the growing expense of the monarchy. 

Palace aides have told ministers they need extra money to offset the cost of maintaining the Royal Estate of palaces and pay for increased fuel, food and staffing costs.  

The timing and urgency of the Bush Administration's call for action from Congress on Treasury Secretary Henry Paulson's plan to save the financial industry from collapse leaves only two possibilities.

Either the White House is criminally incompetent when it comes to the economy, or our current financial status is part of a structured crisis planned as an early October surprise. 

'as under-heard' on Fran Kelly's Radio National show by Gus' vivid imagination...

The bailout doesn't smell right to the people of Manassas Park, where the foreclosure signs are as common as azaleas. They know all about bad debt here. 

This is a terrain of oversize dreams, misjudgement, financial calamity - and empty houses. "Foreclosure. Foreclosure. Foreclosure," said Ed Merkle, 58, as he pointed to the "for sale" signs lining his street. 

Adapted/reversed by Gus from Julie Bishop blogs exclusively for BusinessDay/ TheAge

As Shadow Prime Minister Turnbull complains about Rudd's latest overseas adventure, why does he remind me of Don Quixote? The fictional Man of La Mancha famous for his delusional missions to save the world.

The financial crisis that began in the United States spread to many corners of the globe. Now, the American bailout looks as if it is going global, too, a move that could raise its cost and intensify scrutiny by Congress and critics. 

Opposition Leader Malcolm Turnbull has unveiled the new Coalition frontbench which sees deputy Liberal leader Julie Bishop become the first woman to take on the prestigious treasury portfolio. 

Helen Coonan has also been elevated to foreign affairs while Christopher Pyne has been promoted to education. 

Malcolm Turnbull will crawl all over Kevin Rudd's patch this week by announcing his new-look combat team as the globetrotting Prime Minister flies to New York. 

The freshly anointed Opposition Leader deliberately delayed announcing his shadow front bench until tomorrow to capitalise on Mr Rudd's controversial trip in the midst of deep uncertainty about the economy. 

The Treasury is proposing a fund worth up to $800bn to buy back a large proportion of the US mortgage market, media reports say. 

Legislation for the plan will be pushed through as soon as possible, Treasury Secretary Henry Paulson said. 

Just three days after it went on sale, copies of The Costello Memoirs by former federal treasurer Peter Costello have been dumped in the bargain bins. 

Staff at the Paper chain Bookstore in Manuka, the closest bookshop to Parliament House, reported 'pretty decent' sales yesterday at the full price of $54.99.  

The Federal Opposition Leader, Malcolm Turnbull, is taking a hard line on the Government's Budget legislation in the Senate. 

Government Budget measures, including the inceased luxury car tax, are still stuck in the Senate.  

Invoking extraordinary powers granted after the 1929 stock market crash, the government seized control of the insurance giant American International Group to preserve a crucial bulwark of the global financial system. 

The move to lend the Wall Street giant up to $85 billion in exchange for nearly 80 percent of its stock effectively nationalizes one of the central institutions in the crisis that has swept through markets this month. 

Ousted Liberal leader Brendan Nelson has stood by his decision to hold a leadership spill and has pledged to get behind the newly-elected Malcolm Turnbull. 

At a media conference with his wife at his side, the at times emotional Dr Nelson also said he would not seek or accept a position on the frontbench.