This is the Cato Daily Podcast for Tuesday, September 30th, 2008.

I'm Caleb Brown.

The Paulson Financial Market bailout has failed in the U.S. House, at least on its first go-round.

If this is how Congress handles the process of legislation,

perhaps both taxpayers and Wall Street should be thankful that they're not implementing the bill right now.

Cato Institute Chairman

Emeritus William Nuscanin comments.

The fact that the government attempted to do something and ultimately failed,

Jerry Adriskel pointed out to me last week is gives

us almost the worst of both possible worlds. I was am surprised but not

displeased that the bill failed in the house.

Surprised because I thought that the addition of the insurance element in the package

would assure the support of Mr. Boehner and the moderate Republicans

and that didn't happen because what you had is the conservative Republicans and

I think the wing of the Democratic Party were what killed it.

I think that if nothing happens, if they don't try to recreate this bill by adding or

leading some elements.

If nothing happens, I think that the outcome is that there will be a selective one institution at a time failure of the big financial institutions.

We've experienced that in the last month or so.

We've seen Lehman go under, we've had Merrill Lynch fold itself into Bank America and I think that

and Wachovia apparently has been pulled into Citigroup.

So I think that is the prospect, that is the near-term prospect

...