John McCain bailed on saving the financial system and within hours, Washington Mutual gave up the ghost.
Washington Mutual, the giant lender that came to symbolize the excesses of the mortgage boom, was seized by federal regulators on Thursday night, in what is by far the largest bank failure in American history.
My guess is the stock market will tank tomorrow morning. The debt market has been in the tank all week, but because the only number the average American looks at is the Dow, they have not a clue what’s going on. Paulson is a bond trader. He knows the market is going haywire.
McCain plays politics with the world’s confidence in America’s ability to get its financial house in order. Their love for the ideal of America is strong, but we are sorely testing the world’s patience.
McCain can’t chicken out on the debate on Friday. It would be the end of his sorry campaign. But when he shows up, he better know he has to defend his 26 years of deregulation fervor.