Earn What You Spend

Second time is a charm, they say.  The big news is that the House, two days after the Senate, finally passed the bailout bill.  You can read more about it at the WSJ and the NYTimes.

According to the Journal:

The 263-171 vote was a reversal from Monday, when House lawmakers shocked investors and their own leaders by voting against a more narrow version of the plan to buy up distressed assets from financial institutions. That vote sent financial markets tumbling and forced the Bush administration and congressional leadership to scramble and salvage the rescue plan.

The result: a $700 billion bailout for financial firms combined with $152 billion in unrelated tax breaks and broader tools for federal regulators to deal with the growing economic crisis. The Senate passed the bill with a strong, bipartisan tally of 74-25 Wednesday evening.

So far, though, the market isn’t reacting in the way we’d expect after the massive drop in the Dow when the bill failed to pass the first time.  As of 2:35 EST, the S&P500 is essentially flat. That’s not the news I’d want to hear if I were running for office.