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Who won the debate and Bailout

Finally the first presidential election debate happened and yes McCain did show up after many flip-flops. The debate went as expected - McCain showing his true colors and Obama feeling little agitated due to McCain's constant hammering "you don't get it". In all Obama held pretty well on a subject which was supposed to be McCain's strength. McCain did nothing but drop names of some international leaders (that also he was wrong on saying Pakistan's new President). Obama was crisp in defining his stance on bailout plan. McCain was just saying we need to do this without explaining what is his stance and plans of getting us out of this mess. Overall poll results do show Obama winning the debate and increasing his margin slightly. I would recommend Obama stop saying "John was right" - he said it 8 times during the debate. He should go in offensive mode and keep on saying that we need to stop failed policies of Bush supported by McCain. If he just keep on harping this message and give crisp answers about his economic, health care and international policies, he is all set to win this election and become next President of USA.

Now coming to bailout - looks like leaders of both parties and Administration has reached a tentative deal about bailout package (the draft has reached 100 pages from 3 pages which Paulson submitted). While no one is happy on how we got into this mess, I must give credit to the process and how quickly congress/senate/administration reacted to this crisis and coming up with package. American politicians are best when thrown into a crisis and we can see that in action. In no other democratic country, a package like this would have gotten approved so quickly. So hats off to the American system!

Would it work - how markets would react. I think the bailout package would work and financial companies would find their footing - finally. With WaMu going down, Wachovia under similar threat, I think this bailout package was MUST to avoid classic run on the bank. I wish this could have been done by just modifying/relaxing the accounting rule of "applying mark to market" since these assets are worth more than 20-50 cents on dollar which market is assuming. Good thing is that taxpayers would come out ahead from this bailout package - hopefully next President can use all those gains towards equally important issue this country faces which is educating young people to face 21st century economy and world

Have a good weekend!

/Shyam

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