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House defeats $700 billion bailout

Monday, September 29, 2008

WASHINGTON (AP) - The House on Monday defeated a $700 billion emergency rescue package, ignoring urgent pleas from President Bush and bipartisan congressional leaders to quickly bail out the staggering financial industry.

Stocks plummeted on Wall Street even before the 228-205 vote to reject the bill was announced on the House floor.

When the critical vote was tallied, too few members of the House were willing to support the unpopular measure with elections just five weeks away. Ample no votes came from both the Democratic and Republican sides of the aisle.

Rep. Jo Ann Emerson voted "yes" on the bailout package.

Bush and a host of leading congressional figures had implored the lawmakers to pass the legislation despite howls of protest from their constituents back home.

The overriding question for congressional leaders was what to do next. Congress has been trying to adjourn so that its members can go out and campaign. And with only five weeks left until Election Day, there was no clear indication of whether the leadership would keep them in Washington. Leaders were huddling after the vote to figure out their next steps.

A White House spokesman said that President Bush was "very disappointed."

"There's no question that the country is facing a difficult crisis that needs to be addressed," Tony Fratto told reporters. He said the president will be meeting with members of his team later in the day "to determine next steps."

"Obviously we are very disappointed in this outcome," Fratto said. ". There's no question that the country is facing a difficult crisis that needs to be addressed. The president will be meeting with his team this afternoon to determine the next steps and will also be in touch with congressional leaders."

Monday's mind-numbing vote had been preceded by unusually aggressive White House lobbying, and spokesman Tony Fratto said that Bush had used a "call list" of people he wanted to persuade to vote yes as late as just a short time before the vote.

Lawmakers shouted news of the plummeting Dow Jones average as lawmakers crowded on the House floor during the drawn-out and tense call of the roll, which dragged on for roughly 40 minutes as leaders on both sides scrambled to corral enough of their rank-and-file members to support the deeply unpopular measure.

They found only two.

Bush and his economic advisers, as well as congressional leaders in both parties had argued the plan was vital to insulating ordinary Americans from the effects of Wall Street's bad bets. The version that was up for vote Monday was the product of marathon closed-door negotiations on Capitol Hill over the weekend.

"We're all worried about losing our jobs," Rep. Paul Ryan, R-Wis., declared in an impassioned speech in support of the bill before the vote. "Most of us say, 'I want this thing to pass, but I want you to vote for it — not me.' "

With their dire warnings of impending economic doom and their sweeping request for unprecedented sums of money and authority to bail out cash-starved financial firms, Bush and his economic chiefs have focused the attention of world markets on Congress, Ryan added.

"We're in this moment, and if we fail to do the right thing, Heaven help us," he said.

The legislation the administration promoted would have allowed the government to buy bad mortgages and other rotten assets held by troubled banks and financial institutions. Getting those debts off their books should bolster those companies' balance sheets, making them more inclined to lend and easing one of the biggest choke points in the credit crisis. If the plan worked, the thinking went, it would help lift a major weight off the national economy that is already sputtering.

The fear in the financial markets send the Dow Jones industrials cascading down by as over 700 points at one juncture. As the vote was shown on TV, stocks plunged and investors fled to the safety of the credit markets, worrying that the financial system would keep sinking under the weight of failed mortgage debt.


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Our Government finally listened to us voters and denied bad business the option of reaching into our cookie jar to pay for their own bad business dealings!!!! The effects will be the same if they are bailed out or not and that effect will be harder to get credit. Our free market is correcting its self and it is fine by me. You want to help the economy and the American People?, Hand the money over to us and let us pay for our gas and pay the credit companies that have not taken advantage of us or the government.

-- Posted by cal on Mon, Sep 29, 2008, at 3:18 PM

I am shocked to find out that our rep JoAnn Emerson voted YES on this attempted extortion of the ameican people. Remenber this when it come voting time.

-- Posted by Loophole on Mon, Sep 29, 2008, at 4:12 PM

Next Candidate for Mayor:

Republicans routinely support soclialist corporate welfare. They always have. Why would emerson be any different?

-- Posted by Ike on Mon, Sep 29, 2008, at 4:47 PM

Yes, I called Congressman Emerson's office here in Cape at 2:30PM and spoke with Jessica. I asked her to let Mrs. Emerson know that I have appreciated her service to our district, but that I will have to vote against her in this upcoming election for voting FOR the BAILOUT !!!!!!!!

Finally, the Corpgov criminals are taking a hit !! Vote anti-incumbant this election cycle, or at least vote against anyone who voted for this bailout !!

-- Posted by Colbert on Mon, Sep 29, 2008, at 4:50 PM

Article from New York Times By CARL HULSE and DAVID M. HERSZENHORN

"The vote against the measure was 228 to 205, with 133 Republicans turning against President Bush to join 95 Democrats in opposition. The bill was backed by 140 Democrats and 65 Republicans."

http://www.nytimes.com/2008/09/30/busine...

Looks like 59.5% of House Democrats said yes compared to 32.8% of House Republicans saying yes.

-- Posted by cal on Mon, Sep 29, 2008, at 5:44 PM

thank god for those republicans and WHAT a great job they have done the past 8 years...

-- Posted by 4mobush on Mon, Sep 29, 2008, at 9:25 PM


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