Forbes’ Wingfield and Zumbrun bring us this scoop on how Paulson and Bernanke got the $700 billion figure:

“It’s not based on any particular data point,” a Treasury spokeswoman told Forbes.com Tuesday. “We just wanted to choose a really large number.”

It is, to borrow from my daughter, just another way to say “exillion” dollars.

From The Hill:

Senate Democrats emerged from a meeting Wednesday with Treasury Secretary Henry Paulson to report a general, conceptual — but fragile — agreement on a $700 billion plan to rescue the U.S. financial markets. 
Senators said Paulson and the Democrats struck very tentative deals on Democratic demands on oversight and transparency, executive pay limits, and equity interest on taxpayers’ behalf as part of the massive plan. A hard-fought Democratic provision to allow bankruptcy judges to revise mortgage terms was not likely to survive the horse-trading, however, as Paulson would not agree to the provision that is already in the House and Senate versions.

Majority Whip Dick Durbin (D-Ill.) said a bill could be produced as early as Thursday, with debate and a vote likely over the weekend. Ideally, Durbin said the Senate would finish the bill before Wall Street opens on Monday.

He found that it was only yesterday that this bailout plan used the price discovery logic, and he asks what that means:

One possible explanation. It wasn’t until yesterday that they realized that it would actually be necessary to explain themselves.

But there’s another possible explanation, which I find terrifyingly plausible: the plan came first, and all this stuff about price discovery is an after-the-fact rationalization, invented when people started asking questions.

It has seemed very strange to me that such a supposedly crucial economic program would be based on such an exotic argument. My sneaking suspicion is that they started with a determination to throw money at the financial industry, and everything else is just an excuse.

According to Talking Points Memo, this is nearly a done deal.

The deal on the “bail out” is 98% done. Treasury has capitulated on almost every point. A draft is circulating on the Hill now. No one needs McCain to help do the remaining 2%….except the White House who has no standing on this matter on the Hill with either Democrats or Republicans.

I’ve not heard confirmation of this anywhere else, however.

Obama wants the debate to go on as scheduled. He said:

this is exactly the time the American people need to hear from the person who in approximately 40 days will be responsible with dealing with this mess.

What I’ve told the leadership in Congress is that if I can be helpful then I am prepared to be anywhere, anytime. What I think is important is that we don’t suddenly infuse Capitol Hill with presidential politics…

…

Presidents are going to have to deal with more than one thing at a time. It’s not necessary for us to think that we can only do one thing and suspend everything else.

Adds he intends to continue campaigning, preparing for Friday despite McCain’s announcement, and that he and McCain had chatted about issuing a joint statement but did not agree on postponing the debate.

NBC’s Andrea Mitchell is reporting that

Obama campaign strategist Robert Gibbs said, Obama initiated contact at 8:30 this morning after discussing it on the flight to Tampa yesterday afternoon and again last night. They discussed a joint statement of shared principles on the bailout package — to help move it along toward consensus on the Hill.

At 2:35 p.m., McCain called back and mentioned whether they should meet at the White House and delay the debate. Asked whether they should delay the debate, Gibbs said that this is a global financial crisis — and there would be no better way to shed light this crisis than to debate it. Gibbs says they have not decided whether or not it would be better to postpone the debate — but want to talk to the sponsors (the debate commission) first.

From the McCain campaign traveling press pool report:

McCain Senior Adviser Mark Salter briefed reporters just now off camera on the decision. He told us the following:

–McCain will suspend airing all ads and all campaign events pending an Obama agreement.

–McCain talked to Republican colleagues on the Hill during the past two days and learned that passage of the Paulson plan was going to be next to impossible.

–McCain will only take part in Friday’s debate if an agreement is reached by Friday morning.

–McCain advisor Mark Salter will get back to us on whther McCain is suspending fundraising.

–McCain advisor Mark Salter says that they are confident that if all parties get together, they can agree on a plan by Monday.