Mortgage rates are stuck just above 6 percent, but at least they’re not blowing up or shut down along with the rest of the credit world. We and our peers are operating normally.

Passage of the rescue bill has pushed up long-term Treasury rates, as markets anticipate large sales of new Treasury bonds to raise bailout cash. The stock market has stopped nauseating freefalls twice this week. These moves also reflect hopes for coordinated global central bank rate cuts over the weekend and a Euro-zone version of our rescue package.

New economic data are awful, with GDP obviously contracting in September. Auto sales fell below 1 million last month, 26 percent below last year. The always-reliable purchasing managers’ "ISM" manufacturing index plunged from an expected 50 reading to 43.5 (50 is a breakeven economy, 44 is recession). New claims for unemployment insurance are running a sustained half-million each week, double the rate in a healthy economy. Today’s crusher: Payrolls fell 159,000 in September, half-again worse than forecast.

Before political and financial follies, the highest possible honor goes to Sheila Bair, FDIC head, for grace under pressure. She has gotten us out of WaMu and Wachovia with no hit to the insurance fund: no fuss, no mess, on time. To those of you worried about your bank accounts and stashing greenbacks: cool it. I think our banks are fine, now.

This week we have been in the worst moments of the largest "run" in history, nothing remotely comparable, in part because of these damned elections. Civilians and experts alike have been terribly confused, trying to understand what is happening.

Two things have complicated comprehension: Until the last two weeks’ disaster, this was the slowest-moving run in history, starting 14 months ago. A "walk" on banks, no matter how massive, does not focus the mind of Main Street voters. Second, this run has been at wholesale, bank-on-bank, money-market fund on commercial paper, funds on munis … but no lines of depositors, no deposits lost.

***

What’s your opinion? Leave your comments below or send a letter to the editor. To contact the writer, click the byline at the top of the story.

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