Wednesday, October 1, 2008

Thanks, Mitch McConnell, For That Almost 500 Point Rise In The Market Yesterday!

What Nancy Pelosi's House fumbled Monday Senate Republican Leader Mitch McConnell recovered yesterday. Reuters reports that "[t]he U.S. Senate agreed to vote on a $700 billion financial rescue package on Wednesday night that will include an increase in the amount of bank deposits insured by the FDIC to $250,000 from $100,000."

The Senate acted after, as Politico reports, McConnell and two other Republican Senators -- unlike Senate Democratic Leader Harry Reid, who played chicken --

marched to the Senate floor today to call for the upper chamber to take up and pass the $700 billion economic crisis legislation, saying the Senate needs to send the right message to the world economy after the effort imploded on the House floor Monday.

Despite the volatility of the issue, Senate Republicans are now pushing for the Senate to forge ahead on the legislation. A spokesman for Senate Majority Leader Harry Reid (D-Nev.) says there are no immediate plans for the Senate to take the lead, adding that Reid was going to "proceed very cautiously" given the failure of the bill in the House.

But Senate Minority Leader Mitch McConnell (R-Ky.), seemed to step out in front of the situation this morning, despite facing resistance from conservatives in his caucus and an increasingly tough re-election back home in Kentucky.

"I too want to reassure the American people that we intend to pass this legislation this week,"McConnell "We will pass it on a broad bipartisan basis, both sides cooperating to prevent this financial crisis from persisting. I think the message from the markets yesterday was clear. The time for finger pointing indeed has come to an end."

No doubt McConnell's courageous leadership was a key reason for the dramatic recovery of the market yesterday.

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