Self-Fulfilling Prophecy

Congress is now racing against the clock. The deadline? The opening bell at 9:30am Monday morning. Many members have lamented that Paulson and Bernanke’s warnings of doom-and-gloom are self-fulfilling prophecies: there is little chance that a collapse wouldn’t happen in Congress doesn’t pass something. Here’s the latest from me after a crazy day running around Washington – the Hill, the White House, the Mayflower Hotel (no, you Elliot Spitzer freaks it was nothing like that, Obama held a press conference there). The parties are back on the Hill this morning – McCain meeting with Boehner and later this morning, the Banking Committee leaders convene. Leaders are still hopeful of passing something by Sunday, the question is: how? I note at the end of this story a possible Senate solution – that is still being discussed. And if anyone doubts the severity of the problem, Washington Mutual should be a wake-up call.