The Senate passed the "Emergency Economic Stabilization Act of 2008," and now it's going to the House for a vote tomorrow. It's been a wild ride this week, and many are screaming something that must be done, but that this isn't it. I am not an economist, so I would be remiss to say that I understand all the ramifications of the bill, and I really can't offer an educated opinion on whether it is a good or bad thing to do. On one hand, it could be an enormous power grab for the government in a time of economic crisis; on the other, it could provide a necessary short-term stabilization of the credit markets untl things settle down a bit.

I do agree that it's not just a bailout for Wall Street, but actually a bail-out for all of us. It may not be the right thing to do in the long run, but in the short term, none of us are going to benefit if there are more bank failings. The "silent run" on Wachivia over the weekend and the failing of WaMu last week, are stark indicators of what the future may portend if something isn't done. In 1929 and 1930, Hoover did nothing when the economy was failing, and we all know what happened then.

It is interesting to note that only 133 pages of the 450+ page bill actually deal with the bail-out. The rest are tax incentives and renewals of previously existing provisions. There is an argument about whether these are actually ear-marks, or whether they are going to be helpful, along with the bail-out, to help boost the economy in addition to the bail-out. But when a bill starts out at 3 pages and balloons to over 400, you've got to suspect some sausage is being made.

Update - October 3 The bill has now passed the House and is on its way to President Bush, who will no doubt sign it. The Sausage McMuffin will soon be law...