Today the Dow Jones soared 485 points, recovering over half the losses of yesterday's nose dive. Not that there is not still a serious situation here, especially in terms of a growing constriction on credit.
However, two developments underway may help restore stability and confidence to the economy. The Senate will be next at bat with a finance bill tomorrow evening. This version includes a package of tax breaks and a clause raising the federal deposit insurance limit from $100,000 to $250,000, which would be a big assurance to middle class Americans (a move supported by both Senators McCain and Obama). Also, the Securities & Exchange Commission (SEC) has issued a "clarification" that loosens the "mark-to-market" rule that those more knowledgeable than me have said has had a depressing effect on the financial markets and credit.
A couple of thoughts on yesterday's House vote rejecting the previous rescue/bailout bill. Did Speaker Nancy Pelosi really proceed with the scheduled vote thinking it would pass? Did she really not bother to find out that 95 members of her own party would vote against the bill. These questions have led some to question whether she is either inept as a legislative leader or that she saw this more as a political issue to be exploited than a national crisis to be resolved.
Finally, there was some serious division among House conservative Republicans on yesterday's vote. John Hinderaker at Power Line presents the statements of two conservative Republican Reps from Minnesota who took opposing sides on the vote based on principle and assessment of the choices at hand.
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