It looks like the Senate did the right thing. Now it depends on the President to do the right thing (for a change) and let the bankruptcy reorganize the companies in the courts instead of hooking up the taxpayer IVs and letting the politicians get their fingers in:

The Senate rejected the bailout 52-35 on a procedural vote — well short of the 60 required — after the talks fell apart.

“I dread looking at Wall Street,” said Senate Majority Leader Harry Reid in anticipation of Friday’s stock market reaction. “It’s not going to be a pleasant sight.”

Gee, Harry, not a pleasant sight? I suspect it won’t look any worse than many of the days over the past few months. Besides, since when have you been concerned about Wall Street? I thought you were all about “the working people”?

Stock futures are down, foreign markets are down about 3%, the dollar’s regaining a little versus the Euro, and oil is retreating further. Hard to tell if it’s based on the news. Perhaps if the President announces a plan we’ll see the reaction in a lower dollar, higher oil and gold. It’s not going to be a pleasant sight…