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Market to Congress: Time's Up

New plans simply can't be negotiated in time

By Kevin Spak, Newser Staff

Posted Sep 27, 2008 11:50 AM CDT

(Newser) – Henry Paulson’s bailout plan isn’t perfect, writes Joe Nocera in the New York Times, but we have to enact it anyway because time has run out. “With every passing day, Congress is fiddling while Rome is burning,” says Nocera, just last week a bailout opponent. Lawmakers need an agreement Monday, he predicts, to avoid a Wall Street revolt. “No deal, no credit markets. It’s as basic as that.”

The markets are driven more by psychology than anything else, “and right now, the markets are desperately clinging” to the plan as their lone salvation. If it doesn’t come soon, confidence will be destroyed, borrowing will cease, and the economy will grind to a halt. “Armageddon is again approaching,” writes Nocera. Lawmakers need to hold their noses and pass this bill. Fast.

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Traders work on the floor of the New York Stock Exchange on Thursday, Sept. 25, 2008, in New York. (AP Photo/Jin Lee)

Barney Frank, left, and Christopher Dodd speak to reporters after a meeting with Henry Paulson on the financial crisis Thursday, Sept. 25, 2008 on Capitol Hill in Washington. (AP Photo/Lauren Victoria Burke)

Trader Michael Scagnelli, center, uses his handheld device as he works on the floor of the New York Stock Exchange, Monday Sept. 22, 2008. (AP Photo/Richard Drew)

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The markets are not going to wait forever for a deal to be struck. No deal, no credit markets. It’s as basic as that. - Joe Nocera

Here comes John McCain acting like Andy Kaufman — ‘Here I come to save the day.’ Inserting presidential politics into this is just —— - Barney Frank, D-Mass, Chairman of the House Finance Services Committee

Henry Paulson is not what you’d call a socialist — nor is Ben Bernanke or President Bush. They are all holding their noses as they sell
this plan. - Joe Nocera

« Prev« Prev | Next »Next » Slideshow

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Market to Congress: Time's Up