The stock market went screaming skyward yesterday afternoon and has continued so this morning, on news of a new scheme in the Administration to relieve major financial institutions of billions of dollars of not-yet-known debt [Paulson calls it "the troubled asset release program." There's fancy language for you.] For those of us who live pay check to pay check, have modest savings and fly coach, if at all, this like watching rhinoceros fight from right beneath their feet. When one of them falls our little homestead goes down with them.

The actual plan is not yet known so it’s merely the old high of hope at work, before all the nitty gritty of who wins and who loses is revealed.

Obama just had a 15 minute press conference, flanked by all the heavy hitters from Clinton days. [Not online yet, but here are his advisers.] Obama showed his usual thoughtfulness and command of the facts, dividing his approach into the immediate “staunch the bleeding” emergency measures, and longer term reform of the markets, and protection of “main street.” Republican John McCain, meanwhile, is offering as his plan more attacks on Obama.

Krugman offered his cautionary view yesterday, before the first announcement by Paulson, as did Robert Reich.

Congress, the Fed, and the Administration shouldn’t be giving more help to Wall Street. Policymakers should focus instead on people who really need a safety net right now — workers who have lost or are about to lose their jobs, who need extended unemployment insurance and health insurance for themselves and their families; homeowners who have lost or are likely to lose their homes, who need additional help meeting mortgage payments and reorganizing their debts; and people who have lost or are in danger of losing their savings or pensions, who need better insurance against possible loss.

The only way Wall Street’s meltdown doesn’t spill over to Main Street is if policymakers begin to pay adequate attention to the people whose wallets really keep the economy going, and who merit more help than the Wall Street tycoons whose carelessness and negligence have put it in such jeopardy.

Update:

On the way to work this morning I listened to the very lively BBC call-in show, World Have Your Say [on KALW in the Bay Area, 10 a.m.]. Astoundingly informed, articulate people call in everyday to talk about the proposition proposed. This morning it was: Should Governments Control the Markets? One of the last callers, from California, urged that as part of the enormous government bail-out/take-over/money-infusion no manager or director of any firm being rescued should be allowed to work in the industry for ten years. As he said, this represents a collosal failure to perform by highly paid, highly respected, highly powerful men and women. Any ship captain or pilot, train engineer, bridge designer or construction firm whose practices led to such a catastrophe for so many would have licenses lifted and likely see the inside of courtrooms for criminal or civil damages. We should expect no less in this situation.

The caller suggested we make our feelings known to our congress and senatorial representatives. I agree.

U.S. Senate

U.S. House of Representatives

Speaker of the House, Nancy Pelosi (202) 225-0100 sf.nancy@mail.house.gov

Senate Majority Leader, Harry Reid 202-224-3542 Fax: (202) 224-7327

Senator Barack Obama (202) 224-2854 Fax: (202) 228-4260

Senator John McCain (202) 224-2235 Fax: (202) 228-2862

Senator Christopher Dodd, Senate Banking Committee Chairman (202) 224-2823 Fax: (202) 224-1083