Thursday morning links

TOP STORIES
Pressure Builds as Lehman Faces Mounting Losses - NY Times
Junk Bond Distress Levels Surge, Signaling Defaults - Bloomberg
Lawmakers Seek to Curb Speculators - NY Times
Washington Mutual shares plunge to 17-year low - AP
Legg Mason manager's plan seems to be crash and bear it - Baltimore Sun

MARKETS
Gold up from 11-month low, physical buying supports - Reuters
Saudis Vow to Ignore OPEC Decision to Cut Production - NY Times
Federal oil agency under ethics cloud - MarketWatch
At OPEC, cooling rivalries, extending a hand - AP

ECONOMY
July trade deficit widens on surge in oil imports - MarketWatch
Jobless claims fall less than expecte - AP

HOUSING
Mortgage rates are plunging -- for those who qualify - LA Times
Fannie, Freddie Get Bigger Before They Shrink - Bloomberg
ForeclosureS.com Reports More Than 100,000 Homeowners Lost Homes in August - MarketWatch
Even in the Most Expensive Zip Codes, Prices Are Down - BusinessWeek

FED/TREASURY/BANKING
U.S. Considers Bringing Fannie Mae, Freddie Mac on to Budget - Bloomberg
Fed auctions another $25 billion in loans to banks - AP
Fed May Expand Funding Aid to Banks in a `Mother of Year-Ends' - Bloomberg

INTERNATIONAL
Australian Employment Rises Three Times Forecast Pace - Bloomberg
EU sees recession likely to push UK behind Spain and Germany - Telegraph
Bollard Cuts New Zealand's Key Rate to 7.5%; Currency Tumbles - Bloomberg
'Tens of thousands to be laid off every week' as UK falls into recession - Guardian
Taiwan to Spend NT$181 Billion to Revive Economy, Stock Market - Bloomberg

INTERESTING
Teacher OK after crashing into bear on a bicycle - AP
Atom Smasher Works, World Survives - LiveScience