Market collapse refutes basic financial theory

Analyst: Market collapse refutes basic financial theory

The stock market collapse calls into question the soundness of one
cornerstone of modern financial theory -- the idea of "efficient
markets" – since all the components that conspired to produce the mess
were in plain sight, contends one analyst.

AIG'S CHIEF EXECUTIVE DEFENDS CONTROVERSIAL BONUS PAYOUTS

The chief executive of American International Group tells Congress
that while he doesn't personally approve of controversial bonuses paid
to AIG executives, he felt he had no choice but to honor employee
contracts. Lawmakers vow to explore all possibilities aimed at
reclaiming the bonuses, which have sparked
widespread public outrage.

SUN MICROSYSTEMS SURGES ON REPORTS OF IBM BUYOUT TALKS

International Business Machines is in talks to buy Sun Microsystems in
a deal that would expand its offerings on the Internet, in software
and in finance, according to a published report. Sun shareholders
could receive a buyout premium of more than 100%.

FUNDWATCH: MANAGERS' VIEW ON ECONOMY IMPROVES, RISK APPETITE WEAKENS

Fund managers are their most optimistic about the outlook for the
global economy since late 2005, thanks to renewed hopes for growth in
China, though risk appetite has deteriorated, according to Merrill
Lynch's monthly survey.

MORTGAGE APPLICATIONS ROSE 21.2% LAST WEEK: MBA

With homeowners keen to capitalize on attractive refinancing rates,
the volume of mortgage applications filed for the week ended March 13
rises a seasonally adjusted 21.2% from the week before, Mortgage
Bankers Association data show. A surge in refinancings also had paced
applications activity in the week ended March 6.