Modified Stabilization Bill Passes House

The Stabilization bill that passed the House today is not a bailout. Rather it will be the last option for companies to take, as the measures added to insure the plan makes back it's capital will give pause to anyone considering taking part. Though some companies will take up the offer, they will do so grudgingly. Proof is this was the 200+ point drop of the Dow after passage of the bill.

Of course, the bill was heavily modified from it's original form, with additions ranging from wise, such as the AMT extension and warrants for stocks of the companies participating, to neutral, such as raising the FDIC amount to $250,000, to absurd, such as a $200 million+ tax break for children's archery set makers.

The bill in final is tough medicine. It may keep firms from failing, but will extract quite a price. It may stabilize the market, but it will not prosper it. Most of the opposition to the bill came from a lack of understanding, though some also objected on other grounds. This bill is likely the most palatable form to the most people. Only time will tell if it works.