Markets took a broadside early from generally bearish attitudes towards the future of financial institutions as well as thoughts the bailout vote would be close. Well it turned out to be not so close as the Republicans failed to generate enough votes to guarantee passage. There was talk Speaker Pelosi was responsible for alienating Republicans with a pre-vote rant but ultimately the responsibility was the Republicans and their ability to prove they could endorse their presidential candidate's slogan of "country first." It continues to be a party of few ideas, unable to articulate exactly anything beyond flag waving and calls for lower taxes. The Republicans would have more credibility if they actually were advocating a demand for direct main street intervention, payments to business or troubled mortgage holders, but they end up appearing morally outraged without a practical idea.
Now what? It will have to play out as the pros talk about another re-vote or as some new approach. The markets will thrash and perform the price discovery dance.
