Does this Wells Fargo and Wachovia deal undermine today's bailout push?
I would think so. After all, merger action is a sign of a market that is functioning and self-cleansing. Why would it need government help?
One Congressman thinks the Wachovia deal signals confidence in bailout passage. (Click to see video)
But I can see some Congress folk looking at the deal as a way out of a tough political position. They are all up for re-election. If they got the same amount of "no bailout" mail that I did over the past few days, a deluge that ran nearly 3 to 1 against, I can see how'd they fear to vote for the bill.
On the other hand, today's jobs number isn't really a shining beacon of economic health. That would argue for the bailout package.
We've gotten some really good messages from readers this week. What do you think?
Some Reader Responses ...
The Wachovia deal is a positive but does not solve the issues of the credit markets. - Andrew
Wells Fargo proves the free market does work. Keep Washington out. Their deals are only for a chosen few. – Jerry
Well's Fargo's announcement today suggest that government assistance is not needed, and markets should work this out on their own. Toxic assets should not be dumped on the taxpayer, regardless of taxpayer's future "potential" profit. – Neil
This bill is dirt. It should be buried alive. Anyone voting for this does not get my vote. – Joe
I don't think that the takeover undermines a bailout push. I see it as a good sign that Wells Fargo & Wachovia made a deal, it means we are not to late to prevent a financial meltdown just yet.– Hugo
Wells Fargo wants to get in line 1st for the bail out money thats on the way.– Robert
The bailout bill is now irrelevant. We're past the point of no return in the credit markets.– Jack
I hope the plan does not pass and we are able to let the market correct itself.– BK
Video: One Congressman thinks the Wachovia deal signals confidence in bailout passage.