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After Black Sunday, A Manic Monday?

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We all knew going into the weekend that Monday would be a day to test the strength of the financial system. We just didn't know how tough that test was going to be. It's Monday in most of the world now, and markets are cracking up just a few hours behind sunrise. Australia's financial stocks are leading its market downward, and it's Reserve Bank is injecting $1.3 billion to ease concerns.
Bank of America's purchase of Merrill Lynch at a premium is presumably good news, and may indicate that Merrill was in better shape than many thought. But the deal is pricey, and the premium may diminish if Bank of America's stock gets punished for this expenditure. The news on AIG and Washington Mutual continues to be troubling. Already questions are being asked about whether Morgan Stanley and Goldman Sachs can survive as independent investment banks. As of now it looks grim, with S&P 500 futures down 3.7 percent, Dow futures down 3.1 percent.
We'll leave this as an open thread for discussion of developments over night and predictions about Monday's European and US markets.