The US$700 Billion (now US$800 Billion when you factor in all the pork barreling) bailout was passed overnight in Washington by the Senate and now just needs the Presidents seal of approval:
THE PRESIDENT: A short time ago, the House of Representatives passed a bill that is essential to helping America's economy weather the financial crisis. The Senate passed the same legislation on Wednesday night. And when Congress sends me the final bill, I'm going to sign it into law.
There were moments this week when some thought the federal government could not rise to the challenge. But thanks to the hard work of members of both parties in both Houses -- and a spirit of cooperation between Capitol Hill and my administration -- we completed this bill in a timely manner. I'm especially grateful for the contributions of Speaker Nancy Pelosi, Minority Leader John Boehner, Majority Leader Steny Hoyer, Minority Whip Roy Blunt, Chairman Barney Frank, Ranking Member Spencer Bachus.
White House NewsWhat isn't known is whether it will be successful-I have my doubts-or have any impact at all.
There is another possible crises looming, something Warren Buffett has called financial weapons of mass destruction, that is, default swaps, a type of derivative contract. These are worth around US$62 Trillion dollars.
This clearly puts $800 billion in the shade and are teetering on the edge of collapse themselves.
Hold onto your hats, it ain't over yet.
c Political Animal 2008
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