David Kirkpatrick

September 29, 2008

The House scuttles bailout plan

And the market takes a big hit.

From the link:

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.

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 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.

From the New York Times and news on the Dow freefalling over 400 points on the news.

Update — Dow is down almost 700 points.

I’m glad the vote failed. And no, I don’t think it’s a case of cutting off one’s nose to spite the face. I think it’s a case of a failed administration making one more attempt at a naked and craven power-grab. Get Paulson out of the picture, bring in some adult nonpartisan brains and knock-out a real solution, not some BS version of, “be very afraid and give me unlimited power.”

I think the US public finally woke up, and maybe the GOP did too after the Bush 43 effort at corporate socialism and their presidential standard bearer choosing an unqualified religious nutjob as his running mate.

Go below the fold for additional updates as the situation warrants.

(more…)