Massive Implosion Heard at Talks

Talks between Democrats and Republicans break down during talks Thursday night.

By: John Noble The Wall Street Journal is reporting that the talks between Republicans and Democrats have stalled, if not collapsed completely. The talks apparently ended last night because House Republicans wanted to introduce their own plan to help stop the meltdown in the financial markets. The plan, put forth by Republicans during the meeting Thursday night, would include requiring Wall Street to purchase insurance for any mortgage-backed securities, tax cuts, and what is being hailed as "relaxed regulation." While the Republican plan does have the advantage of not forcing the American public to foot the bill for the housing crisis and other financial debacles, House Democrats are saying that the Republicans have abandoned the bipartisan plan that had been in place. Democratic attendees have also accused Senator John McCain of ruining the talks, after siding with House Republicans. The New York Times has joined the Democrats in questioning the Senator's decision to return to Washington, saying that he has, "...he found himself in the midst of a remarkable partisan showdown, lacking a clear public message for how to bring it to an end." Many analysts are predicting a rough week on Wall Street. The news of this breakdown in talks, as well as the Washington Mutual failure, may put the market into a tail spin that will be difficult to bear.