Oct. 7--An anxious and embattled Congress approves a $700 billion bailout of credit markets, and how does Wall Street respond? The Dow Jones industrial average declined on Friday afternoon, and then plunged at the start of the new week. The message? Investors, economists and government officials know that the financial troubles are likely to deepen before conditions improve. The rescue package was necessary because circumstances almost certainly would be darker without the measure.

Betty Sutton deserves applause for joining the majority when the House considered the proposal a second time. The Copley Township Democrat liked elements of the tax relief added by the Senate, including provisions for the middle class. She rightly argues for additional steps, such as extending unemployment benefits and bolstering the food stamp program. Much has been made about the pork attached to the bill. Yes, it is offensive. Other additions make sense, the parity for mental health treatment under insurance coverage, for instance.

Put another way, the packaging hardly diminished the need to pass the bailout. No less than Warren Buffett, the legendary billionaire financier, argued that if handled correctly, the rescue package could result in taxpayers making money. None of this satisfied Steve LaTourette. The Bainbridge Township Republican twice voted against the package. Rather than make a tough call, he took the easy path in this election year: He seized the moment to oppose an unpopular bailout and howl about all that pork.

As the markets made plain, the Dow index diving 800 points before finishing 360 points down on Monday, the hard work of repairing credit markets, and the economy, has just begun.

Even if Henry Paulson, the treasury secretary, moves at a rapid pace, the removal of toxic securities won't start until early next month. That promises, in the short term (at least), further pressure on banks strapped for capital. No surprise then that the Federal Reserve announced on Monday it would expand greatly the amount of money available to major banks, up to $900 billion in credit.

Perhaps the most difficult challenge facing Paulson and colleagues is determining the price at which they will buy the all-but-worthless mortgage-backed securities. Shoot lower, and taxpayers will benefit. The risk is, such a pricing strategy may put the rescue mission in jeopardy. Banks recording such losses will likely continue to be short of capital and resistant to lending. The hard reality is, it may be better to aim higher, even if taxpayers initially overpay.

After all, the objective is restoring enough confidence to see credit flow at a sufficient rate. Fail to do so, and the economic troubles will be prolonged.

The failure has been fundamental. The wizards of Wall Street are paid so handsomely because they perform such critical tasks: They allocate capital and manage risk in the world's most prosperous economy. In recent years, they performed poorly, to say the least. The fix will require a new regulatory framework. First, the system must be stabilized. That explains the need for the bailout. No one should think that is answer enough.

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