Despite Changes, Rescue Package Still Imperfect

The bailout bill, sorry, “rescue package” passed by the U.S. Senate on Wednesday night is now 451 pages long and includes roughly $150-billion more in unfunded spending.

While the core of it remains intact, the changes will make it unappealing to outspoken moderate House Democrats and some fiscally conservative Republicans, so approval by the House of Representatives is by no means a done deal, CreditSights told clients.

The majority of Senate members are not up for re-election in November and none of the changes look as though they will appeal to those who oppose intervention in the markets.

The fixed income research firm said:

If it passes, there will be no quick fix, but the ability to offload tainted securities outside of a bankruptcy scenario should work to ease the credit market gridlock that is growing worse daily. If it doesn’t, expect the one-off responses to each new element of the crisis that has characterized the regulatory reaction to date.

The list of companies being affected and the ways in which they are being affected continue to grow. From GE’s (GE) equity sale to Berkshire Hathaway (BRK.A) to the latest dismal auto sales data, the costs of the credit crisis are both increasing and increasing in visibility.