The bailout/rescue package has gone down in flames. May be resuscitated later in the week. But the House vote wasn’t close, and no one wants to be seen taking responsibility for what may be a turkey–or a lifeline.
So what now? Will a broad stock market fall sober everyone up? Or will a modest fall make folks think that the package wasn’t necessary after all and things will sort themselves out? I thought the amendments to the package were pretty good, but I’m out of my depth here. My sense was that, however distasteful, this was one of those moments when the nation and leaders had to make a show of support in the system and the institutions. Otherwise, it will rain on the just and the unjust.