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HOUSE KILLS PLAN TO INTERVENE IN MARKETS 228-205
The U.S. House of Representatives rejected the proposed $700 billion bailout of Wall Street by a vote of 228 to 205.
The partisan split showed 140 Democrats and 65 Republicans voting for the legislation, while 95 Democrats 133 Republicans voted against it. While the bill could be brought up again, it’s uncertain what will happen next.
Supporters vowed to bring the bill up for another vote, but it’s unlikely the result would be any different. House minority leader Rep. John Boehner, said the chamber will not vote again Monday.
As for the South Carolina delegation, Reps. Gresham Barrett was the only member to vote against the bill. Reps. Henry Brown, Jim Clyburn, Bob Inglis, John Spratt, Joe Wilson, all voted in favor of passing the legislation.
Not surprisingly, President Bush said he was very disappointed and that he will be meeting with members of his team this afternoon “to determine next steps.”
The Dow Jones industrial average was down as much as 705 points late this morning amid fears the bill would not pass. That plunge continued as it became apparent that the bill would be killed.
The House Website was also down due a significant spike in traffic concerning the legislation.
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UPDATE: At the closing bell, all three major indexes were at 52-week lows. The Dow Jones Industrial Average ended trading down a record 777.68 points (6.98 percent), while the NASDAQ Composite finished the day down 199.61 points (9.14 percent) and the S&P 500 sank 106.59 points (8.79 percent). Oil prices also plunged more than $10 per barrel over fears that a prolonged economic downturn that could sharply curtail energy demand.
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UPDATE 2: Rep. Joe Wilson has released the following statement:
The cost of doing nothing during this economic crisis threatens the retirements and jobs of the people of the Second Congressional District of South Carolina. This is not about Wall Street. It is about Main Street. It’s the community banks that provide loans to the small businesses of this nation or student loans to families struggling to afford a quality education for their children. It’s those small businesses that create jobs – the very foundation of commerce that drives our economy. A systemic failure of this size in our complex economy would harm not just the market but the individuals who I have the privilege of representing. It has made the option of doing nothing unacceptable.
I adamantly opposed the proposal originally sought by Secretary Paulson. It lacked transparency, accountability, and protections for taxpayers. That is why I stood in strong support for free market alternatives proposed by House conservatives including a far better alternative that failed to pass this morning. The legislation we considered on the floor this afternoon had tougher oversight and an alternative insurance plan to make Wall Street fix its own problems. It would have made sure that the first in line to recoup losses would be the American taxpayers who by no fault of their own were exposed to this crisis by the mishandling of others. This was not the best option available, and there are no perfect options. This was a compromise at a time when we need solutions.
I voted to remain in session until a solution is achieved, and I urge that Congress be reconvened as soon as possible to face these issues now.
(Photo: AP)
Good news….good news indeed
Absolutely fantastic. Now we can clean out the trash of the finance industry the proper way and get on with our lives.
it was a tough pill that unfortunately needed to be swallowed — everyone is to blame – Demos for opening up the housing markets and Republicans for Deregulating any and everything … both parties for believing that somehow that (ontologically) fallen human nature – greed, avarice, pride – would not infect the markets – guess what economics doesn’t take place in a vacuum whether it’s on main street at the local loan office and bank or on Wall Street with knowing securitization of bad debts anyway!
So if it’s a hard pill to swallow then why vote against it? What happened to the mantra of country first?
Bill – I would love it, but I’m not sure the economy has it in her.
Mei – you hit the nail on the head. This is a problem not of legislation, but one of greed. How do you outlaw greed and short-sighted profiteering?
Now, our Congress proposes to stick the bill to the no-longer silent majority that pays their bills, plays by the rules, and wonders why they have to foot the bill for irresponsible lenders and borrowers. People have right to be upset and suspicious of this bailout.
While in the macro sense, a bailout plan is necessary, I think you’ll find a lot of people out there who will support this if and when it is made clear that there will be some accountability. Right now, they perceive this bailout – right or wrong – as a Get Out Of Jail Free card.
We’re already seeing some of the failed banks get bought out, and while some money will be lost, the majority of value will be recovered when the homes that were foreclosed are sold. While I can see the value of liquidity, I too am hesitant at the cries to start throwing money at the problem and worry about the details later.
The details are how we learn from what happened, ensure nobody who profited off shady lending gets off the hook, and make sure this mess never happens again. When a bill is presented that provides assistance, but specifies accountability, I imagine it will fare better.
Joe Wilson voted for the bailout.
I wasn’t gonna vote for him anyway as I have a thing against incumbants, but that soundly settles the matter.
Amen Bill, I have Wilson to be uninformed, not too bright, and generally worthless as a representative. He might make a good shoe salesman, with apologies to any shoe salesmen in the audience.
I’m doing the happy dance that the bailout didn’t pass. I’m definitely voting AGAINST Inglis in November. I actually worked on his senate campaign back in ‘98, but I am sorry I ever supported him. He seems so clueless.
Gresham is the man. Goodbye Andre and Henry and the rest.
A Republican with guts…wow!
Joe Wilson showed guts and statesman like leadership when it was not popular. No one wants this, but it will be necessary. A bitter pill indeed. Let’s take out medicine and start to pick up the pieces one by one.