The latest doesn’t sound too promising. A GOP Capitol Hill source is “hearing some frustrating things out of the negotiations over the Paulson bill. For the last day or so, there have been just 4 principal negotiators: Dodd, Frank, Blunt, and Gregg. But now apparently, 9 Democrats invited themselves to a meeting intended for the 4 main negotiators, including Schumer and Rangel and Rahm Emanuel.” The Democrats are now, it seems, “making all sorts of demands, including a new across-the-board tax on securities firms.” It is getting heated with yelling from two of the Democratic Senate interlopers and the ever-helpful Senator Schumer apparently telling his colleagues that this vote “will be like voting for the Iraq War.” 

What’s up? Well perhaps this is a tactic to back the House GOP-ers off their demands. Maybe it is becoming evident that a nice bipartisan compromise with John McCain’s imprint would be a trophy for him. But if we are headed for a Monday market meltdown all incumbents will need to think seriously about the consequences — for the country and themselves — if the talks break down.