The markets will tank again on Monday because they just didn’t get it done, as Krugman notes in Falling Short:

…The IMF ministers have endorsed the G7 plan — but there isn’t any plan, just a vague statement of principles.

I’m willing to bet that Paulson is the problem, as he doesn’t seem to understand the real problem. People are looking for guarantees that their money will be safe, and the “leaders” don’t seem to understand that the “market” has no credibility. Every delay means there will be less to save.

It is too late for words, people want actions with results they can see.

This is my thinking on a new tax structure with a little logic and order. I’m adding the 20% bracket to ease the transition, and I’m lowering rates on the bottom of the corporate rates because those are the people who create jobs. The big corporations don’t generate jobs, no matter what you’ve been told. Small business is where the jobs are today.

The personal rates are more in line with what people are making, and it keeps the bottom half of the working population at 15% and below. The $150K+ are the top 5%, and $350K+ are the top 1% of individuals.

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Position: 26.5 N 109.5 W [10 PM CDT 0300 UTC].
Movement: Northeast [040°] near 17 mph.
Maximum sustained winds: 85 mph [140 kph].
Wind Gusts: 105 mph.
Tropical Storm Wind Radius: 175 miles [280 km].
Hurricane Wind Radius: 50 miles [85 km].
Minimum central pressure: 961 mb ↓.

It is 124 miles [185 km] East-Northeast of Loreto, Mexico and 55 miles [90 km] North-Northwest of Los Mochis, Mexico. It coming ashore in Mainland Mexico.

Watches and warnings for Baja California are canceled.

A Hurricane Warning is in effect for the coast of Mainland Mexico from Topolobampo northward to Guaymas.

A Tropical Storm Warning is in effect from south of Topolobampo southward to Altata.

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