The bailout approved by the US House of Representatives. In this second attempt to pass the bill - ansd after more than a usual amount of pork - many Republicans shifted their vote in favour of the bill. Still a majority of Republicans did not. Wall Street soars (Update: Subsequently falls heavily). America is happy (Update: Subsequently unhappy) again.
It is interesting to glance at the first few pages of this enormous (400+ page) "Assets Relief Program" bill. Here is a negative assessment - to be clear I don't agree with this line but it does reflect what about half of America thinks.
Saul Eslake over at Troppo will no doubt be happy with this legislative outcome. The deal plus a few extras only costs 6% of GDP according to Saul the banker which he claims is cheap in the history of such matters. Saul urges politicians to protect Australian bank profitability by not insisting that any forthcoming RBA interest cut be passed onto borrowers. Yes he does work for a bank and obviously sees no humour in the self-interest that seems to underlie such claims. What's good for bank shareholders is apparently self-evidently good for Australia. Why have the Australian Banks done so well in difficult times? Partly I guess it is a sound regulatory setting and maybe efficiency - is this the same thing as lousy customer service - but also it reflects the cosy security of a tight quadropoly. Where is Caesar's wife?