The stubbornness of the House Republicans reminds me of the Gingrich revolt against the Bush/Darman tax increases of 1991. It set the stage for the Contract With America and winning the House in 1994.
If the Democrats take responsibility for a risky and wildly unpopular Wall Street bailout, they open up a lot of scenarios for losing Congress in the cycle after this one. Never mind Paulson and Bush, they're gone in three months, and getting away from Bush on domestic policy is hardly a political loser anyway.
Without the House GOP, the political risks to the Democrats are huge, and politicians hate risk. I don't think there's a deal without the House minority.
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