Monday, September 29, 2008

Wait and See

If the essence of compromise is that nobody likes the final result, it appears that the bill crafted by the House and Senate to bail out Wall Street is the soul of compromise. House Minority Leader John Boehner referred to it as a crap sandwich, but he’ll vote for it. Whether that lukewarm endorsement is enough to bring along the rest of his party remains to be seen.

The first sign of the bill’s effectiveness will be seen in how the world markets react to it. Early this morning (5:36 AM), the European markets were down; the FTSE (England), DAX (Germany) and CAC 40 (France) were all down by over 2%. There may be other factors, including their own financial worries, and they may not have fully read the bill — who has? — but it’s a sober start to the day.

Meanwhile, another big financial firm, Wachovia, is in trouble.

Just another day in the free market.