The NYtimes has a great and detailed story on how the bailout deal fell apart, and I've got to say, having read it, that I agree with Mark Kleiman's take. There was a deal, and McCain, with help from House Republicans, torpedoed it for political reasons.
Over lunch, I heard Krugman on the radio, and he dismissed the Republican plan for a capital gains tax holiday as "insane, if true". That seems about right.
Oh, and McCain's going to debate now. Consider that bluff called, I guess. Not a huge surprise, given that his "suspended" campaign was still spewing bile, running ads, and raising money, while he was still giving interviews as a candidate.