Harold Maass of The Week The Best of Today's Business

NEWS AT A GLANCE

Pilots face overworking concerns

Commercial pilots are getting stretched dangerously thin as financially challenged airlines squeeze more productivity out of them, safety experts and regulators warn. Pilots are flying more grueling schedules than at any time since 2001. (The Wall Street Journal) In other aviation news, Germany's Lufthansa is reportedly negotiating to buy Scandinavian rival SAS to bolster its position in Europe's consolidating airline industry. Lufthansa, currently No. 2 in Europe, is racing against Air France KLM and British Airways to snap up European carriers. (Reuters) Virgin Atlantic head Richard Branson, meanwhile, said he is willing to spend "millions of dollars" to block the proposed tie-up of British Airways, American Airlines, and Spain's Iberia. (Reuters)

Lehman looking for buyer

Lehman Brothers reportedly put itself up for sale, after days of trying to shore up investor confidence failed to stop the sharp fall in its stock. Lehman's potential suitors include Bank of America, Barclays, and private equity firm Kohlberg, Kravis, Roberts & Co. (The New York Times) The Federal Reserve and the Treasury Department are actively helping the 158-year-old bank find a buyer, apparently before Asian markets open Monday and ideally with no public money involved. "I don't see where anything has really changed in the last few days to make Lehman a $4 stock versus a $20 stock," said James Paulsen at Wells Capital Management. "What we're dealing with, I think, is less fundamentals than fear." (The Washington Post)

Washington Mutual hit by downgrades

Washington Mutual, reeling from a 34 percent drop in its stock this week and credit-rating downgrades, could have to sell part of its network of 2,300 branches, analysts say. (Bloomberg) WaMu said late yesterday that it is "well-capitalized," with relatively stable retail deposits of $143 billion and $50 billion of reliable liquidity. (MarketWatch) Rating agency Moody's cut WaMu to below investment grade yesterday, and Fitch lowered it to just above "junk." The No. 1 U.S. thrift's "options have narrowed significantly, even over the past two days," said Sean Egan at Egan-Jones Ratings. (Reuters) WaMu said it is paying new CEO Alan Fishman at least $12.54 million in salary and bonuses next year. (AP in BusinessWeek.com)

Damien Hirst and the big art-market gamble

Damien Hirst is the world's most expensive living artist, and he's putting his Hirst brand, and maybe even the art market, on sale at a Sotheby's auction next week. This is Hirst's first big sale since he sold a diamond-encrusted skull for $100 million last year. Hirst is putting 223 new works up for sale, and if it is a success, it will be seen as a sign that the Hirst brand has staying power. If it falls short, however, that's a bad omen for contemporary art's ability to weather the credit crunch and economic slump. Oliver Barker at Sotheby's isn't worried. "Unlike equity, paintings are things you can actually enjoy and hang on your walls," he said. (MarketWatch)

BEST COLUMNS OF THE DAY

The free-market free fall

Whatever happened to "self-reliance," "individual responsibility," and "a faith in free markets"? says Steven Pearlstein in The Washington Post. Those values are as central to our national identity as they are to our economic model. But in rescuing Bear Stearns, Fannie and Freddie, and now Lehman Brothers from the wrath of the markets and their own bad judgment, the U.S. government has waded "hip-deep in the direct management of the financial system." And this from a government pushing deregulation and privatization. When this crisis is over, probably after "several more rescues and interventions," don't be surprised to find a new "willingness to use the powers and resources of government to enhance economic stability."

Bite beats flight in today's market

"One of the many paradoxes of the stock market," says Brett Arends in The Wall Street Journal, "is that the worse it gets, the better it gets -- at least, for those still able to invest." Human nature makes us want to flee when things get bad, like stock prices. But of course, that's backwards for smart investing, and at least one smart investor thinks now's a good time to buy. The "frequently bearish" money manager Jeremy Grantham suggests you'll get a decent seven-year return on "high quality" U.S. equities -- about 5.6 percent on top of inflation -- or "a broad investment in emerging markets." Yes, "there are plenty of reasons to be nervous" in today's market, and that's why many assets are reasonably valued.

GOOD DAY FOR: Aussie actors, after Forbes rated Nicole Kidman the most overpaid celebrity. Kidman beat out last year's winner, fellow Australian Russell Crowe; her ex-husband, Tom Cruise, came in at No. 4 this year. Forbes said that Kidman's films earned $1 for every $1 she was paid. Jennifer Garner, No. 2 on this year's list, whose movies earned $3.60 for every dollar paid. (Reuters)

BAD DAY FOR: Ticketmaster, after the announcement that Live Nation had poached its second-biggest client, venue manager SMG, sent its shares down 17 percent yesterday. SMG manages 216 arenas and other municipal venues. Under the deal, Live Nation will take over SMG's ticket sales by 2011. Ticketmaster threatened to start competing against SMG in venue management. (The Wall Street Journal)

NOTED: Italian airline Alitalia is close to bankruptcy after Roberto Colaninno's Compagnia Aerea Italiana investor group pulled out of negotiations. Colaninno said Alitalia's union wouldn't agree to its rescue plan. Alitalia, which declared insolvency in August, lost more than $3 million a day in the first half of the year; Italy's been trying to sell it for two years. "This has become the latest act in the Alitalia soap opera," said Patrizio Pazzaglia at Bank Insinger de Beaufort. "One has to hope that it's just some arm wrestling between the two sides and that they will get back to negotiations.'' (Bloomberg)

This column was written by Peter Weber and edited by Harold Maass of TheWeek.com.