Breaking News: We Have a Deal

In an update on some of our previous discussions here, the US Congress seems to have negotiated a deal for a Wall St. bailout that at least a majority can live with.

CNNMoney discusses the provisions of the deal here: http://money.cnn.com/2008/09/28/news/economy/Sunday_talks_bailout/index.htm?cnn=yes

Basically, the deal is based on the original $700 billion package proposed by Treasury Secretary Paulson. The Democratic add-ons (the most discussed of which have been additional Congressional oversight of the money and caps on CEO pay for those companies receiving the money) seem to be included, as well. The Republican "revolt" in the House was placated at least somewhat with a provision involving mortgage insurance (which was pretty much that group's alternate plan), but Paulson has (not in so many words, but these people never say anything in so many words) that he doesn't think that will help and doesn't want to use that option.

In the end, we have a somewhat more sensible version of the plan we started with a week or so ago. This is the plan sparking public public protests around the country, roundly accused of favoring "Wall St. over Main St." Polls this week have showed that Americans are pretty much split... one third favor the plan, one third are opposed, and one third are undecided. No one will ever accuse me of being an economist, but I personally do not yet understand how this will actually solve the root problem. I hope it will, though, since otherwise this is an awful waste.