Notes from JWR:
I just got word that the US House of Representatives voted down the $700 billion USD Troubled Asset Relief Program (TARP) Bill. I’m glad to see that it was defeated. There is simply no proper substitute for allowing the credit market to correct itself, by working the bad debt out of the system. Propping up the system would have made the eventual reckoning day even worse. There will probably be some substitute or “bipartisan compromise” legislation offered, but don’t fall for it. If it extracts money from your wallet to bail out the banks from Credit Default Swap derivatives and …