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Fed's $85 Billion Loan Rescues Insurer — By EDMUND L. ANDREWS, MICHAEL J. de la MERCED and MARY WILLIAMS WALSH — WASHINGTON — Fearing a financial crisis worldwide, the Federal Reserve reversed course on Tuesday and agreed to an $85 billion bailout that would give the government control …
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TalkLeft, Reuters, The Huffington Post, New York Magazine, Empire Burlesque, DealBook, Comments from Left Field, Spin Cycle, Balloon Juice, Taylor Marsh, Real Time Economics, Los Angeles Times, DownWithTyranny!, About.com US Politics, American Street, CNNMoney.com, Matthew Yglesias, Brave New Films blog, Megan McArdle, TigerHawk, The Moderate Voice, Alas, a blog, Buck Naked Politics, Hullabaloo, Concurring Opinions, American Power, Lawyers, Guns and Money, Eschaton, naked capitalism, Economist's View, Mish's Global Economic … and Newshoggers.com
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McCain Embraces Regulation After Many Years of Opposition — A decade ago, Sen. John McCain embraced legislation to broadly deregulate the banking and insurance industries, helping to sweep aside a thicket of rules established over decades in favor of a less restricted financial marketplace …


Pelosi orders wide Wall Street probe — House Speaker Nancy Pelosi has ordered a broad, swift investigation of Wall Street and will demand testimony from Bush administration officials and captains of finance, congressional officials said. — House Democrats plan to aggressively look …
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The Opinionator, pw, TIME.com, American Street, Stop The ACLU and Patterico's Pontifications

Perhaps, Time for Someone to Play Offense — WASHINGTON — Late last week, as Lehman Brothers was collapsing, an all-star group of economists was meeting here to ponder the lessons of the financial crisis. The group included Donald Kohn, the vice chairman of the Fed, and Edward Lazear …


U.S. Seizes Control of AIG With $85 Billion Emergency Loan — Insurer's Wide Reach Justifies Intervention, Fed Says — Invoking extraordinary powers granted after the 1929 stock market crash, the government seized control of the insurance giant American International Group to preserve …

For release at 9:00 p.m. EDT
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The Swamp, The Glittering Eye, DealBook, Firedoglake, Portfolio, ParaPundit, Mish's Global Economic …, Paul Kedrosky's …, Time and Concurring Opinions

U.S. Plans Rescue of AIG to Halt Crisis; Central Banks Inject Cash …
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USA Today, New York Times, Real Time Economics, About.com US Politics, Real Clear Politics, Pajamas Media, Portfolio and Conglomerate

Mother of all bailouts: $85 billion to AIG
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The Hill's Blog Briefing Room, FP Passport, pandagon.net, The American Mind and Megan McArdle

Fed rescues AIG with $85 billion loan for 80% stake
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LewRockwell.com Blog


Prominent Clinton backer and DNC member to endorse McCain — WASHINGTON (CNN) — Lynn Forester de Rothschild, a prominent Hillary Clinton supporter and member of the Democratic National Committee's Platform Committee, will endorse John McCain for president on Wednesday, her spokesman tells CNN.

McCain campaign clamps down on questions in Alaska — JUNEAU, Alaska - GOP vice presidential candidate Sarah Palin is effectively turning over questions about her record as Alaska's governor to John McCain's political campaign, part of an ambitious Republican strategy to limit …
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Balloon Juice
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McCain reportedly ‘furious’ with Fiorina, campaign adviser says she will ‘disappear’ from TV. — Today, McCain economic adviser Carly Fiorina bluntly stated that neither John McCain nor Sarah Palin were capable of running a major corporation (she said the same of Barack Obama and Joseph Biden).
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Christian Science Monitor


Fiorina's comment called ‘Biden-like’ — (CNN) — Top McCain-Palin official Carly Fiorina is facing criticism from some within the campaign for a day of what they call “very Biden-like” comments, after the former Hewlett-Packard CEO told two separate interviewers that neither member …

Clinton blindsided by scheduled event with Palin — WASHINGTON (AP) — Sen. Hillary Rodham Clinton has canceled an appearance at a New York rally next week after organizers blindsided her by inviting Republican vice presidential candidate and Alaska Gov. Sarah Palin, aides to the senator said Tuesday.
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Jonathan Martin's Blogs
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As Palin Joins Planned Protest Against Iran, Clinton Cancels
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Ben Smith's Blogs


Financial gloom doesn't halt glitzy Obama fundraiser — So what does Barack Obama do after a hard day of defending the common man during the worst financial crisis since the Great Depression? — Throw a $28,500-a-head fundraising dinner, of course. — Followed by a $2,500 …
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Strong Fundamentals — Eric Rauchway reflects on Herbert Hoover's October 25, 1929 proclamation that “The fundamental business of the country, that is the production and distribution of commodities, is on a sound and prosperous basis.” … Now of course to actually get down to the depths …
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Eschaton
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Sebelius: Say, did you know Republicans are racists? Update: AP or Miami Herald tries cleaning up Sebelius' comments — Hmmm. Didn't Barack Obama just get done scolding John McCain over “dishonorable” attacks? Maybe he should save his criticisms for his surrogates, except that they're parroting The One in his own baseless smears.
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MiamiHerald.com
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The Mortgage Debacle - Not Enough Blame To Share Some With The Democrats? — Nancy Pelosi somewhat implausibly insisted that Democrats are blameless in the current mortgage debacle: … Barack Obama blames Bush for slack oversight: … However, the record tells the opposite story …
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U.S. Embassy in Yemen Attacked — Attackers exploded a vehicle bomb outside the main gate of the U.S. Embassy in Yemen on Wednesday in what appeared to be a well-coordinated assault that triggered more explosions and heavy gunfire around the compound. — Yemen's official Saba news agency …
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The Strata-Sphere
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True Whoppers — Economists are not generally known for their lyrical phrasing. But the other day, one told me something about the election that has stuck with me: He cautioned against succumbing to the “symmetry of sin.” — This unexpected snippet of political poetry …

Democrats Go There — I'm sure Keith Olbermann will be angered to tears over exploiting this tragedy. — So long as we know what the ground rules are, fine. We'll start running commercials accusing Democrats of dishonoring the dead. (F**k that— let's have some now-out-of-the-service vets explain …

Even on trial, Stevens pulls in earmarks — Sen. Ted Stevens (R-Alaska) is busy fending off federal charges and scrambling to retain his seat, but that hasn't affected his appetite for earmarks. — Stevens has secured the most earmarks in the Senate defense appropriations bill, according to an analysis by The Hill.


Historians say McCain camp not sleaziest — David Axelrod, Barack Obama's chief strategist, said Sunday that John McCain is running the “sleaziest and least honorable campaign in modern presidential campaign history.” It was a line trotted out all weekend by various Obama staffers as part …