From the Panel yesterday:

KRAUTHAMMER: …You look at the market today, which rebounded hugely, and you can say either it’s because the doomsday scenario was wrong, and the markets in Europe nonetheless went up and the sun came up in the east in New York, and people thought it was OK if you don’t have a package.
Or you can argue that the reason it went up is because everybody on Wall Street assumed after hearing the president and Democrats and Republicans and Mitch McConnell and others say we will have a package. It will be changed in some way, but we will have a package. Everyone on Wall Street believes we will have a package.
I believe the second theory is right and the first is completely wrong.
HUME: But the futures were up last night before anybody said any of this.
KRAUTHAMMER: The problem is that–the thing that Jim Angle had talked about, which is the spread on the lending, the seizing of the credit markets, even if the stock market holds up a day or two or three, if no one is lending and no one will lend at six and seven percent overnight, nobody will lend, no one is going to have any money and the economy is going to be in a crushing collapse.
Everybody understands that. The reason that Bernanke and Paulson are running around with their hair on fire is because they’re looking at the overnight lending numbers, and those are real. That’s what’s going to happen.
That’s why I think the markets reacted, assuming there is going to be a package. If there isn’t a package, I think there will be a collapse that will make yesterday look like a picnic.