And the failure has sent the markets into a tailspin.

I’ve got far too many thoughts on this to get into now. Credit is frozen, and I mean frozen. Nobody is lending. Something does have to be done, but from the beginning of the process I think the congressional leadership has made a serious mistake by keeping details from the public, both about the problems and the proposals. The pols want to be reelected, so you have to sell the thing to the public, and that’s all there is to it.

You also have the usual ideological BS in the way, and that led to a watering down of the public equity portion of the proposal. But if the government is going to buy the debt, then it should profit from the debt once the economy turns around. Basically, the failing banks should become public, or even, yes, socialized banks. The Republican insurance proposal is more crap of socializing risk while privatizing profits. I hope the Democrats hold strong on the equity proposal, and of course oversight.

Of course my question is where is it written that a large business shouldn’t be allowed to fail?

Meanwhile, Ecoshift has been writing about these issues for quite some time and has many interesting links.

Thompson voted “no” by the way.

Addendum: Did Pelosi get played?

Here’s another possibility, indicated by the breakdown of the roll call vote list linked above – this was a populist “uprising of right and left” against centrist weasels. Still, while Sirota and others are calling for “starting over from scratch,” they don’t say much about what they want in the bill. It’s much easier to unite right and left in opposition. The problem is of course that the left is rejecting anything that merely amounts to aid to Wall Street without direct and complete compensation to the public, while most of the right is simply rejecting government intervention into the economy.

Second addendum: Ooops.

John McCain, in a campaign rally this morning, took credit for the resolution and claimed Obama “was on the sidelines”. McCain said he, McCain, was pivotal.

Let’s give him credit folks. He was pivotal.

Third addendum: The candidates have reacted. McCain is blaming Obama. Obama says “stay calm, because things are never smooth in Congress.”

Fourth addendum: Rep. Barney Frank offers to say nice things to the Republicans who changed their vote because Pelosi said mean things to them.

Fifth addendum: Ecoshift says “the sky is not falling.

Paul Krugman on the other hand says we just became a banana republic.

Sixth addendum: Well, I spent a couple of hours scanning the news reports tonight and so far no Republican is willing to explain how Nancy Pelosi’s speech derailed the Republican support for the speech per Eric Cantor’s press conference. And so far no names of Republicans who changed their minds about the bill because of Pelosi.

Rachel Maddow was in top form tonight. She points out that as things stand, there is NO Republican leadership.