In the Headlines

"Bailout Plan Rejected, Markets Plunge, Forcing New Scramble to Solve Crisis" (Sarah Lueck, Damian Paletta and Greg Hitt, Wall Street Journal) - The House of Representatives defeated the White House's historic $700 billion financial-rescue package -- a stunning turn of events that sent the stock market into a tailspin and added to concerns that the U.S. faces a prolonged recession if the legislation isn't revived.

"In Bailout Vote, a Leadership Breakdown" (Jackie Calmes, New York Times) - The collapse of the proposed rescue plan for the teetering financial system was the product of a larger failure -- of political leadership in Washington -- at a moment when the world was looking to the United States to contain the cascading economic crisis.

"McCain blames Democrats for bailout failure; Obama says look at the record" (Seema Mehta and Maeve Reston, Los Angeles Times) - John McCain, calling himself a man of action like his hero Teddy Roosevelt, told a raucous crowd here Monday that he had helped lead the charge to pass the Wall Street rescue plan. "I've never been afraid of stepping in to solve problems for the American people," McCain said to cheers and applause.

"Palin Gets Ready For Eagerly Awaited Debate With Biden" (Juliet Eilperin, Washington Post) - Alaska Gov. Sarah Palin flew yesterday to Sedona, Ariz., where she will spend the next two days at Sen. John McCain's ranch preparing for Thursday's vice presidential debate, a potentially pivotal event in what has been a whirlwind since she joined the Republican ticket.

From Late Night

Letterman:

--------------------------------------------
Follow the RCP Blog on Twitter.
Become a fan of RCP on Facebook.
--------------------------------------------