Merrill Lynch was about to go under. Having suffered severe losses, it was said to be next after Lehman Brothers. So why pay a 70% premium, 70% more than the stock was trading for, to acquire it? As it was just headed down, why not offer 3% over, trusting that the ML shareholders would like to get something today rather than nothing in a week or so?

I'm sure there's a reason, I just don't know it. Maybe Uncle Sugar is providing the 70% in order to keep the ML shareholders happy, knowing that a lot of them are devout Republicans.

"And the deal for Merrill Lynch pays a 70 percent premium to the brokerage's closing price Friday. The stock has been squeezed in recent weeks, leading many Wall Street veterans to point to the company as the next behind Lehman as likely to run into trouble with bearish investors and get hit by intensified selling. The deal to pair the company with Bank of America, a huge bank with a big asset base, removes some of the worries about Merrill would be the next to fall.

"Merrill rose $4.76, or 28 percent, to $21.81, while Bank of America fell $4.58, or 14 percent, to $29.16."