Congress Announces Breakthrough on Bailout

Leaders in the Senate and House announced a breakthrough in the negotiations for the White House $700 billion bailout at 12:30 a.m. EST on Sunday, September 27th. The announcement makes it clear the legislators have agreed in principal and will commit the agreement to paper overnight and expect to sign it during the day on Sunday. Asian markets open on Sunday afternoon and Congress is rushing to meet that deadline. The problem began with bad real estate loans and the record number of foreclosures and declines in home prices. Then the financial markets were rocked by a number of collapses and mergers. The announcement did not give details of the tentative plan. The devil remains in the details.