Bailout plan passes Senate, moves to House

Is there any doubt that the bailout plan has become a political issue now? Substantively, the bailout plan that passed the Senate was really not much different from the one that was soundly rejected just days earlier by the House. But Senators had a few inducements that their House counterparts did not: Tax breaks for the middle class and businesses, and a new law requiring insurers to treat mental health conditions more like general health problems. (Not really related to the financial crisis, now is it?) There was one notable related inducement: a boost in the amount of FDIC coverage for individuals from $100,000 to $250,000, an increase that was not funded. Essentially, the new bill gives lawmakers in the House cover for a shift: they could always claim they did so to provide tax breaks and more account protection. We'll see if this works. It's coming down to politics vs. principles.

For more:
- here's a Washington Post article

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