House Rejects Bailout Package, Stocks Plunge

by thoughtfulconservative

Via the NYTimes.com

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

Wisconsin’s delegation voted as follows:

Democrats 4-1 in favor (Baldwin, Kind, Moore and Obey for; Kagen against).

Republicans 2-1 against (Sensenbrenner and Petri against; Ryan for).

Each side blames the other for the failure. Republicans fault Nancy Pelosi’s speech before the vote. Democrats say the Republicans are putting partisanship before the country.

Stocks have tumbled. Shortly before the closing bell, the Dow was down 777 points, NASDAQ was down almost 200 points and the S&P 500 was down 106 points. A sea of red is scrolling across the bottom of CNBC’s screen. This is the largest drop in 10 years.

Republicans leadership is said to be working hard to get the thirteen votes they need to pass the bill.

Oh and another byproduct of this is that Citicorp is buying Wachovia.

The Asian Badger read the bail out bill and gives his thoughts.

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8 Comments to “House Rejects Bailout Package, Stocks Plunge”

  1. I just read on Breitbart that this is the 17th largest drop ever but not as bad as the drop in 1987. Was there a bailout plan or something the government did back then to “fix” the market?

  2. what is happening is another classic case of rich gettin richer. most of the dems voted in favor, the republicans majority voted against, causing the drop in stock,. in a week when a revote is done all the low price stocks bought from this will pick back up after the revote of the bill is passed and it will be this next time.

  3. I don’t remember any, Dave. Looking at Wikipedia, the cause is still unknown although they give a few possible causes.

    So, robert, are you recommending buying stocks? And the Dems are helping the rich get richer? Cuz I think it would be a surprise to them.

  4. I am honestly glad they didn’t do it. That being said, the markets are going to continue to get hammered until something is done; I am extremely glad that I am not exposed to any of this.

    http://jwojdylo.wordpress.com

  5. As a lifelong Republican I have agreed with both parties at times through the years, but this is the first time I can say that I am ashamed of my party. I am no fan of Speaker Pelosi, but I think her comments, while poorly timed, were right on the mark. For too long the financial movers and shakers have been allowed to do whatever they want, and have largely been driven by greed and a total lack of an ethical compass. While we need to get the markets stabilized quickly, there should also be a long-term plan for more control over the financial markets, that include “circuit-breakers” so that lenders cannot exceed their safe reserves in lending practices. Many people are opposed to the rescue package as favoring the rich, but realistically while everyone with any money invested either directly or through pensions and 401-k plans, etc. will be hurt by a collapse of the financial markets. The big difference between the very rich and the average investor is that the very rich may see their fortunes decline from 100 million to “only” 10 million dollars, but the middle class investors may very well be wiped out completely. I think an imperfect plan passed quickly is better than no plan at all.

  6. I was disappointed that the bill did not pass. However I did not read the bill prior to tonight. One of the things that I found that bothered me was the amount of pork in this bill. Of all the bills that come before the house and senate, this is the one bill that should not have had any pork. I am a registered Republican, however I have never voted a straight ticket, I’ve always voted for the individual that I felt was the best for the job. However, listening to some of the remarks by Senator Polosi over the weekend really turned me off. This congress was warned of this crisis 2 years ago. They failed to act. Both Polosi and Reid have been major contributors to this situation. President Bush’s bill was flawed. But congress would not have acted if he had not presented his bill. Congress presented a flawed bill also. But instead of taking two days off, they should have sat down and authored a bill that would be more agreeable to the public. But Polosi and Reid have a reputation for not being team players. In dealing with my state government I have found that the Republicans arre more likely to work with the other party then the Democrates are. So far this congress has proven to be the same. When I was in Viet Nam we had both republicans and democrates in my unit. We argued a lot about politics. But when our camp came under fire, we were all Americans and fought together. To bad congress has never learned to do this.

  7. Huh? “Republican leadership is working hard to get the thirteen votes they need to pass the bill.”

    There were 95 Democrats who voted against the bill. The bill is so horrible, that five Congressmen who were part of the committee that constructed the bill voted against it.

    If you listen to Nancy Pelosi’s speech, the Democrats are responsible for the legislation that will “save the country” from the evil economic policies of the Bush Administration (never mind that Bush is the one who proposed the original legislation that the Democratic bill is based upon).

    Democrats better stick to their own base if they have any hope of passing the largest spending bill in the history of the United States!

  8. The sentence was based on the fact that President Bush and his administration submitted the legislation, originally, and the party leadership, including the Republican candidate for president were in favor of the bill.

    I am not that excited about the bill myself. And certainly economists don’t agree. There is bipartisan support and bipartisan opposition.

    I pay about as much attention to what Pelosi says as I do to Keith Olbermann. Well, perhaps more, because she holds a high office.

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