As I write, the DJIA is down about 300 points. This is being spun as based on uncertainty that the House will pass the Senate bill. Yesterday, stocks rose, spun as being based on the likelihood that Congress would indeed pass a bailout bill. Which is it, guys?

Meanwhile, over in Europe, the European Central Bank has injected $150 billion into banks to try to increase liquidity. It hasn’t worked. Rather than lend to each other, they’ve put it in deposits at, err, the European Central Bank. If there is indeed a liquidity crisis, and I’m not sure there is a systemic crisis, it would be best solved by reforms that make sure that early terminations do not lock in mark-to-market losses (which is what killed Bear Stearns). The supposed “reform” of mark-to-market rules announced by the SEC on Monday night was actually just a clarification. Failure to take this simple step is a significant barrier to easing liquidity concerns around the world.