Bailout deal nears

Looks like it's really going to happen this time, and if you can believe today's news stories, the rescue package will look a lot like what had been agreed to on Thursday – before McCain blew into town. Here are stories from the NYT and Washington Post. Senate Majority Leader Harry Reid says he hopes Congress and the Bush administration can at the very least release an outline of the bailout plan by Sunday evening - just in time for the Asian markets. Even the WSJ editorial board is signed on.

No one tried harder than we did to avoid arriving at this pass, but now that we're here our vote is that this government intervention is justified to defend the system. The critics have many good arguments, not least that neither the current Treasury nor the Federal Reserve inspire great confidence. Hank Paulson and Ben Bernanke have practiced ad hoc-ery for 13 months, piling up serial bailouts only to watch the panic get worse. They are finally attacking the problem in a systemic way, however, and with enough resources to begin repairing the larger damage. The execution risks are real, as in any government exercise, but the risks of doing nothing are just as real for the economy and for believers in free markets. Above all, the risk is that the current panic will damage the overall economy and lead to a deep recession that causes a further decline in housing values and continues a spiral to even greater financial problems

Meantime, the weekend cable news folks are treating the bailout bill as if the fate of the entire universe is at stake.