The bailout — success from the jaws of defeat?

I’ve done some blogging on the bailout — here on today’s failure in the House and here’s a link to more.

It looks like the WSJ thinks the House vote was a blessing in disguise. I agree with them.

From the link:

Don’t Panic.

By throwing out a deeply flawed bailout plan, the House may have created an opportunity to craft a more effective response to the financial crisis.

With credit markets frozen and the Dow Jones Industrials Index plummeting 777.68 points Monday, the 228-205 defeat of the rescue package appears to come at the worst possible time. Plenty of experts think the “no” vote has the power to wipe what little confidence remains in the markets.

But it also could lead policy makers, particularly Treasury Secretary Henry Paulson, to draw up a plan that more directly addresses the factors causing the financial system to fall apart.