This from Rex Nutting seems a little over-dramatic to me:
Now we shall see if Paulson and Bernanke were right when they said the credit crisis could worsen and inflict dire consequences on the global economy…. Rejection of the plan means there’s no political solution to this financial crisis on the horizon. As it now stands, the markets are on their own. The next six weeks will tell whether the coup d’etat in the House on Monday has created a political crisis to match the financial one.
Isn’t the most likely scenario that as the House takes the day off for the Jewish Holiday, the GOP leadership rounds up ten new votes from safe incumbents that are then routinely matched by ten new Democratic votes and basically the same thing that failed on Monday passes on Wednesday? The House conservatives who killed the bill have no plan B so I have a hard time seeing them staying firm. In the interim, folks should be exploring the possibility of writing a bill that could pass the house with exclusively progressive votes, since the progressive side does have a plan B. But it seems unlikely that it’ll actually come to that.