As I predicted, the combination of arm twisting and pork barrel promises persuaded the House to pass the bailout by a wide margin. This despite some congressmen reporting that calls from constituents were running 100 to 1 against the measure.

In the aftermath, the stock market dropped and the banking credit system remains frozen.

I still feel that something major is going to occur next week. As soon as the realization sinks in that the bailout does not address the credit freeze and spreading fears of bank failures, we will be back in crisis mode. People will then begin wondering what bullets the Fed and Treasury still have in their arsenal.

I hope I am wrong with this assessment, but this is intuition speaking.

-Darkwave