After a week of drama, Congress passes bailout package

Reuters: The U.S. government enacted a landmark $700 billion bank bailout on Friday, but investors questioned whether it could contain a panic that began on Wall Street and spread to become a global financial crisis.

The U.S. House of Representatives approved the rescue plan by a vote of 263-171 on Friday. That sent the measure to President George W. Bush, who quickly signed it into law, concluding two weeks of high-stakes haggling over the plan that had roiled and captivated global markets.

More... http://www.reuters.com/article/topNews/idUSTRE49267J20081003?sp=true

Roller Coaster Week on Wall Street

AP: Wall Street extended a huge rally Friday as investors stormed back into the market, relieved that the government plans to restore calm to the financial system by rescuing banks from billions of dollars in bad debt. The Dow Jones industrials rose about 370 points, giving them a massive gain of about 780 over two days, and Treasurys fell as money flowed into equities.

The government's proposal, while still a work in progress, has placated investors who worried that a continuum of bad bets on mortgages would hobble more financial companies and cause further damage to the strained banking system and the overall economy.

More... http://www.breitbart.com/article.php?id=D93A23FO1&show_article=1

Pearce: Global Markets also "roar" on the news of a rescue package.  White House and Congressional officials are working through the weekend to finalize the rescue package legislation.  The proposed action will have an enormous pricetag, around $700B, but is based on the believe that doing nothing would be much worse for Americans in the longrun.

Weekly Extras

Election 2008:

RCP:  New polls good news for Dole

RCP: McCain looking good in battleground states

Cook: Charlie Cook Reassesses the Presidential race

FT: Democrats on Capitol Hill fear Obama fallout

Other News:

Reuters: Hurricane Ike could be "catastrophe" for Texas

Dole: NC Senator joins bipartisan "gang of 20" to deliver comprehensive energy strategy 

Report: Lance Armstong to return for the Tour

AP: Clarence Thomas says Constitution forbids racial preference

Battle for Congress Suddenly Looks Competitive

Gallup: A potential shift in fortunes for the Republicans in Congress is seen in the latest USA Today/Gallup survey, with the Democrats now leading the Republicans by just 3 percentage points, 48% to 45%, in voters' "generic ballot" preferences for Congress. This is down from consistent double-digit Democratic leads seen on this measure over the past year.

Republicans, who are now much more enthused about the 2008 election than they were prior to the convention, show heightened interest in voting, and thus outscore Democrats in apparent likelihood to vote in November. As a result, Republican candidates now lead Democratic candidates among likely voters by 5 percentage points, 50% to 45%.

The new USA Today/Gallup measurement of generic ballot preferences for Congress casts some doubt on the previously assumed inevitability of the Democrats' maintaining control of Congress.

If these numbers are sustained through Election Day -- a big if -- Republicans could be expected to regain control of the U.S. House of Representatives.

The key question is how much of this is temporary because of the tremendous bounce in support for the Republicans on many dimensions coming right off of their convention. The degree to which the Republican bounce is sustained, rather than dissipates, in the weeks ahead will determine whether the 2008 race for Congress could in fact be highly competitive, rather than a Democratic sweep.

More... http://www.gallup.com/poll/110263/Battle-Congress-Suddenly-Looks-Competitive.aspx

Man Arrested Near Capitol After IED, Rifle, Ammunition Allegedly Found in Jeep

FoxNews: A man is under arrest in Washington after an improvised explosive device, a rifle and some ammunition were allegedly found in his jeep, Capitol Police said Friday.
The man stopped to ask police for directions near the Capitol building at about 11 a.m. EDT Friday, at the intersection of 2nd and Independence Avenue Southeast, according to Capitol Police spokeswoman Sgt. Kimberly Schneider.
The officer responding noticed a rifle case on the car seat and inspected the jeep, discovering the IED, rifle and ammunition.
More... http://www.foxnews.com/story/0,2933,417581,00.html