Day 12: Regrouping

The twelfth day of Capitol Hill negotiations over just how to address the financial crisis is could prove to be a quiet one, at least publicly. In part, that’s because today is Rosh Hashanah, the Jewish new year holiday. But it’s also because everyone is regrouping after the spectacular failure of the administration’s proposal yesterday, and the accompanying plunge in the stock market.

The stock market has perked up considerably at this point, although the credit markets are grim. Hopes are still high for a deal by week’s end. But it’s unclear whether that means an entirely new deal — either one acceptable to more Republicans and Democrats, or one Democrats can pass even with limited support from the right — or a modified version of what failed on Monday.

In addition to continuing coverage on, the New York Times has a look at what Treasury could do without a bill. Both candidates spoke with President Bush about what’s next, and all three men urged Congress to act.

Polls suggest the impasse is hurting John McCain more than Barack Obama; CNN calls it a “major blow” to McCain. The president’s already low popularity also took another hit, falling to 27%, a new low, in a Gallup poll.

Stay tuned.

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