Shortly after that, Germany acted, and after that, it's been a steady flow of bailouts.

A bit of summary from the Wall Street Journal:

European governments and central banks rushed to the aid of financial institutions struggling to stay afloat amid a shutdown in the markets on which they depend to borrow money. In Germany, the government and a consortium of private banks provided a €35 billion ($51.15 billion) rescue package for big commercial lender Hypo Real Estate Holding AG.

In Iceland, the government nationalized the country's third-largest bank, Glitnir Bank hf, pumping in €600 million for a 75% stake.

And in Russia, Prime Minister Vladimir Putin said the government will allocate $50 billion -- and more if needed -- to provide banks with funds to pay back foreign loans coming due.

Breaking news right now on Bloomberg:
Dexia Will Receive $9.2 Billion Bailout From Belgium, France

Dexia SA, the world's biggest lender to local governments, will get a 6.4 billion-euro ($9.2 billion) state-backed rescue after worsening financial markets drove the shares to a record decline.

and Irish Government Will Guarantee Bank Deposits, Debt After Shares Slumped

Ireland's government said it will guarantee Irish banks' deposits and debt for two years, seeking to calm investor concern after banking shares fell 26 percent in Dublin yesterday.

And check it out:
Sarkozy Pledges to Aid French Banks Caught in Financial Turmoil:

``We have to support our banks,'' Sarkozy said today in a press conference in the coastal city of Marseille, France. ``The U.K., Belgium, Luxembourg, the Netherlands, Germany are states that acted to guarantee the stability and the security of the financial systems in their countries and in Europe.'

Mini-rant: MEANWHILE, ON TPM (yes I'm shouting,) amazingly some people are busy contemplating  a coverup of what's wrong with John McCain's left eye, and TPM Media thinks it's cute to use a headline that says "Congress Takes Vacation As Bailout Stalls: Oy Vey." At least the House Republicans pretended to have a passing interest in reality. Wake up people, what is happening is not a joke! Too many in the blogosphere are starting to sound and look exactly like a President Sarah Palin is what you deserve. Right, keep blogging on the bright shiny distracting political circus topics, just pretend everything's ok as those high-paying corporate ads start disappearing one by one, someone will furnish free bread sooner or later.

WESTMINSTER, Colo. — Democrat Barack Obama called on Congress to stay in Washington and pass a bailout for the hobbled financial industry, minutes after the House rejected the latest plan.

"One of the message I have for Congress: Get it done," Obama said.

The Democratic presidential candidate said he's confident Congress will eventually work out something, however. "I'm confident we're going to get there, but it's going to be rocky," the Illinois senator said.

-- Fortis, the largest Belgian financial-services firm, received an 11.2 billion-euro ($16.3 billion) rescue from Belgium, the Netherlands and Luxembourg after investor confidence in the bank evaporated last week.

Bradford & Bingley Set for Nationalization, Takeover (Update1)
Sept. 29 (Bloomberg)

-- Bradford & Bingley Plc, Britain's biggest lender to landlords, may be taken over by another bank or nationalized today under a U.K. government-backed plan to protect 21 billion pounds ($39 billion) of customer deposits.

Obama: "Thanks to the hard work of Democrats and Republicans, it looks like we have a rescue plan that includes these taxpayer protections. It looks like we will pass that plan very soon."

'Un-American' Bailout, Paulson Should Have Quit, Gingrich Says
September 28, 2008 12:46 PM

Gingrich, R-Ga., on Sunday described Treasury Secretary Henry Paulson's request for billions of dollars to buy debt from struggling Wall Street financial firms as "un-American" and said the secretary should have stepped down. Gingrich even expressed concern with Paulson's connections to Wall Street.

Barack Obama's $66 million haul in August donations may set records but it's only a down payment on the huge sums the Democratic nominee must continue to collect in order to compete through the Nov. 4 election.

...Those complex dynamics are likely to put additional pressure on Obama and his financing team. The enormity of the task is already fraying nerves in Chicago and eating into the Illinois senator’s campaign time as the campaign combs the country for both small and big donations.

“It’s a logistically challenging fundraising environment they face, because time is not on their side and their goals are so ambitious,” said Anthony Corrado, an expert on money and politics. “Do the math. They have to raise about $3 million a day” to reach an estimated target of about $200 million, he added.

....Tuesday, Obama is scheduled to be in Beverly Hills, a Zip code that is home to plenty of Democratic money but in a state whose electoral votes he already has in the bag. Money raised will go to the Democratic National Committee and his own campaign.

Tuesday, Obama is scheduled to be in Beverly Hills, a Zip code that is home to plenty of Democratic money but in a state whose electoral votes he already has in the bag. Money raised will go to the Democratic National Committee and his own campaign.

Obama has taken on a extraordinary burden that is complicated by his unprecedented ground game strategy for the fall and the late close to the primary season.

In July, Obama spent $57 million — more than any prior month and more than the $51 million he collected that month. A large chunk of that cash went to the salaries of his expanding field operation...

...The signs of concern have become evident in recent weeks as early fund-raising totals have suggested that Mr. Obama’s decision to bypass public financing may not necessarily afford him the commanding financing advantage over Senator John McCain that many had originally predicted...