– After a week of grim news, could Friday provide a happy ending to the week? Some in Washington certainly hope so. According to the WSJ, the bailout bill “appeared to gather momentum in the House of Representatives” after the strong bipartisan showing in the Senate.

– US stock futures reflect the brighter mood on Capitol Hill. “S&P 500 futures rose 9 points to 1,133.40 and Nasdaq 100 futures climbed 10.25 points to 1,520.75. Dow industrial futures rose 73 points,” according to MarketWatch.

– Also adding to the positivity is news that Wells Fargo (NYSE:WFC) is to buy Wachovia (NYSE:WB)in a $15.4 billion takeover.

Since mid-2007, 81 hedge funds have imploded. Another 34 are in trouble.

“No matter how you cut it, it’s been a rough year for the hedge fund industry,” says J. Christoph Amberger, editor of Today’s Financial News.

These funds may soon be forced to sell off their assets – many of which are commodities.

J. Christoph says this have a market-flooding effect… and weigh heavily on commodities prices.

The Senate is voting today on the bailout bill. It’s gained a FDIC insurance raise and significant tax breaks since it failed in Congress. Senate leaders say this would put pressure on the House pass the bill on a second vote.

The passing of the bill would mean “far higher prices are ahead,” according to Keith Fitz-Gerald.

And higher prices – otherwise known as inflation – means higher oil prices to come.

– Today, it’s the turn of the Senate to vote on the bailout bill that Congress ditched spectacularly on Monday. Call it bold move, call it political stunt, Senate leaders hope the move will help the bill pick up more votes in the House.

– Mr. Market is still on edge, however. US stock futures have slipped after yesterday’s surge. “S&P 500 futures fell 11.9 points to 1,156.80 and Nasdaq 100 futures dropped 19 points to 1,585.50. Dow industrial futures fell 96 points,” reports MarketWatch.

– The FDIC isn’t taking any chances. It is asking Congress to approve an increase in deposit insurance limits.

– “The US may face its longest recession in a quarter century no matter what action Congress takes on Treasury Secretary Henry Paulson’s $700 billion plan to rescue the battered banking industry,” says Bloomberg. The US economy shrank in the third quarter, and “a further contraction is likely in the next two quarters … which would make the recession the longest since 1981-82.”

– After the biggest one-day point drop in history for the Dow US stock futures are pointing to a recovery today. “S&P 500 futures rose 25 points to 1,143.80 and Nasdaq 100 futures added 13.5 points to 1,525.50. Dow industrial futures rose 136 points,” reports MarketWatch.

– The White House and Congress have agreed on Hank Paulson’s $700 billion bank rescue bill. The bill means the US government could be about to become the biggest slum landlord in history as it buys up junk mortgage and securities at above-market prices.

– Dems have included in the bill a clause that will limit executive pay within companies that sell assets to Treasury through an auction process. The bill will prohibit a company that sells more than $300 million of assets to Treasury to make “golden parachute” payments to executives.

These are turbulent times for commodity traders. After Monday’s record surge, crude oil prices are edging back towards the $100-a-barrel mark again. Andrew Snyder says these wild gyrations provide great short-term profit opportunities for fast-moving investors. This mainly applies to small-cap stocks. Andrew says the market gloom has created bargains across all sectors for those who do their homework…

– There really must be a financial crisis. John “the fundamentals of our economy are strong” McCain has suspended his presidential campaign to to return to Washington to work on the proposed $700 billion bailout bill of financial institutions before Congress.

– Meanwhile, McCain’s fellow Republican George W. Bush made a televised appeal for the swift passage the plan. He said the “entire economy is in danger” and warned of a “financial panic” and “a long and painful recession” if Congress didn’t pass the bill soon.

– Billionaire investors Warren Buffett has sent US stock-index futures rallying after his Berkshire Hathaway announced it will buy $5 billion worth of perpetual shares in soon-to-be bank-holding company Goldman Sachs (NYSE:GS). The news sent shares in Goldman up almost 8%. Shares in Morgan Stanley (NYSE:MS), which is also converting into a bank, rose 9.8%.

– December-dated S&P 500 futures rallied 13.10 points, Dow futures were up 101 points, and Nasdaq-100 Index futures rose 18 points on the news. Yesterday, US stocks ended the worst two-day rout since 2002.

If you need more proof that the US lost the Cold War to Russia and China you need look no further than Venezuela, says emerging markets expert Irwin Greenstein, writing for Contrarian Profit. Hugo Chavez, president of Venezuela, inked two significant energy deals with China and Russia that will divert American oil to our former Cold War adversaries.