When I was a college student at Macalester College shortly after the Earth cooled, I studied political science with G. Theodore Mitau.  Ted Mitau was incredibly savvy, and we enjoyed his excitement with politics and his personal connections with liberal lions like Hubert Humphrey, Orville Freeman and Walter Mondale.  In addition, a fellow student in my international politics classes was an Ghanaian exchange student by the name of Kofi Annan.  It was a lively time.  One of the most fascinating notions Ted Mitau put forth was a great truism, perhaps a very old truism, but nevertheless great stuff for a college student: every politician in office is faced with the challenge of voting his or her conscience, or voting his or her constituents' wishes.  In other words, do people elect politicians because of the politicians' views or because the constituents believe they, the constituents, will direct the votes of the politicians?

We witnessed today congresspeople caving in to their constituents' opinions, however ill-informed they may be.  Millions of Americans sent emails and letters and made phone calls to their representatives saying in essence "this is a bad thing because it bails out Wall Street; don't pass it."  The House decided that it was important to obey The Will of the People, and voted down the bailout bill.  A cynic might say that the representatives needed the cover of a Wall Street crash in order to go against The Will of the People.  It would allow them the incredible luxury of not understanding the bill, and letting The Market make the decision. I truly doubt that the majority of American voters understand the rescue plan.  Indeed, the majority of our elected representatives probably don't fully grasp the fine points of the bill.

Well, The Market made the decision.  More than one trillion dollars disappeared from the pockets of Main Street so that Wall Street wouldn't get a 700 billion dollar rescue.  Since it will be two more days before the Congress can re-address the rescue plan, will there be a loss of a trillion dollars each day?

We need some profiles in courage here, folks - courage that was conspicuous by its absence today in the House.

The bailout as agreed to but not yet passed by Congress is most likely a document with many provisions unintelligible to all but the most wonkish of economists.  The best summary I have seen is that by Kenneth Harney in today's Realty Times. 

In my opinion, the entire nation - especially home buyers - has been holding its breath until it's clear what direction our economy is heading.  We may not hear the collective exhale today, or even after both houses have passed the bill, but this may be the solution the lack of mortgage money that is apparent in many areas. 

Hedge fund devotees are still thumping their tubs that the market will get worse.  However, in many areas of the country, including Somerset County, New Jersey, there are good values to be had for serious buyers.  And there are serious buyers out there for properties priced at market value and in good or better condition.

All together now - exhale.