But don't assume we're in the clear. Far from it. Today was just the "dead cat bounce" that often results the day after a major sell-off. The long-term problems with the world's financial systems are still here, and the crisis in credit will only get worse as long as banks are too spooked to lend out money. If they become convinced to shut off the valve, life will become very difficult very quickly.
While I'm against the Paulson bailout bill, I still insist that serious action must be taken and taken quickly. We need a better bill, a more progressive bill, one that gets at the root of our problems. Will that happen in our current political environment? Will the Dems grow a spine and resiscover the spirit of FDR and the New Deal? Will the GOP scrap any rescue plan that works its way through the Congress? Will McCain suspend his campaign a few more times between now and November? Will Newt Gengrich really try to kill our economy just so he can run for President in 2012?
Who knows? Beats me. This is the toughest poker match I've ever faced. All I know is that we're pretty far from alright. We really are facing the greatest financial crisis since the Depression. We are still in a lot of trouble.
Stephen Bainbridge has more on that. Aw, I sure hope the Twins win tonight. We need some good news.