October 1, 2008 8:12 AM

What Now?

This evening the Senate will come together to pass the Paulson/Bush bailout plan, with two changes from the defeated House bill. The Senate is adding on an increase in FDIC deposit insurance from $100,000 to $250,000, and a package of business tax breaks - some good ones, some bad ones. They will then go home and dare the House NOT to pass it.

This bill is little better than the rejected House bill but with only one third of the senate up for election, it will pass.

So the real issue is what happens in the House. A group of progressive representatives have introduced the No Bailout Act, and are backed by SEIU. While there are some portions of the proposal I disagree with, such as the suspension of certain accounting standards, it is a far better proposal for fixing the problem and helping the economy than the Paulson/Bush plan.

Most importantly, the progressive alternative deserves a vote. The senators can afford airfare to fly back to DC to consider a new proposal if it passes.