INSTANT VIEW: House passes bailout, sends to Bush

NEW YORK (Reuters) - The House of Representatives on Friday approved the Bush administration's $700 billion financial rescue package, reversing a shock rejection of the measure earlier in the week that had sent global stock markets into a panic.

KEY POINTS:

* The tally to approve the bill was 263 in favor vs 171 against.

* Initial market reactions were muted compared with the huge sell off in stocks witnessed after Monday's rejection by the House of the original bill.

COMMENTS:

DAVID KELLY, CHIEF MARKET STRATEGIST, JPMORGAN ASSET MANAGEMENT, NEW YORK:

"It's a necessary but not sufficient condition to get us out of this mess.

"There are more questions than answers out there still, but obviously this is a positive for both the stock market and credit markets in general.

"Given how onerous some of the conditions are on this whole package, will the Treasury be able to get banks to participate? And the second question is, even if banks do participate, how willing will they be to make new loans into the economy if they can get rid of the bad ones, the old ones."

MARK FREEMAN, SENIOR VICE PRESIDENT AND PORTFOLIO MANAGER, WESTWOOD HOLDINGS GROUP, DALLAS:

"Treasuries had seen a little bit of a selloff as it looked like the vote would actually pass. Now reality has set in from there. The bigger issue for the bond market is how does the short end of the Treasury curve behave, because that reflects the current dislocation in the credit markets."

TOM BENTZ, BNP PARIBAS COMMODITY FUTURES INC., NEW YORK:

"Obviously, we know that big picture demand is the big question at this point. Is this going to bring demand back-- we don't know, it's going to take time to see that.

"I think there are still a lot of questions as to whether or not this bill is going to save the economy anyway. The crude market is saying, how is this really going to change demand at this point? I don't know if you can say that directly just from this bill passing."

JOHN CANAVAN, ANALYST, STONE & MCCARTHY RESEARCH ASSOCIATES, PRINCETON, NEW JERSEY:

"A lot of it has been priced in here, I think you are seeing that -- equities have ticked off their best levels a little bit and Treasuries have ticked off of their lows. A lot of it has been priced in and it remains to be seen what the longer-term impact is. There may still be room for a little more near-term profit-taking in Treasuries, so in the near-term we may lose a little bit more ground. But, it doesn't change the economic situation drastically over the next couple of quarters and that is quite negative."