Monday, September 29, 2008

Bailout Rejected

From the New York Times:

In a moment of historic drama in the Capitol and on Wall Street, the House of Representatives voted on Monday to reject a $700 billion rescue of the financial industry.

The vote against the measure was 228 to 205. Supporters vowed to try to bring the rescue package up for consideration again as soon as possible.

Stock markets plunged sharply at midday as it appeared that the measure would go down to defeat.

House leaders pushing for the package kept the voting period open for some 40 minutes past the allotted time, trying to convert “no” votes to “yes” votes by pointing to damage being done to the markets, but to no avail.

Supporters of the bill had argued that it was necessary to avoid a collapse of the economic system, a calamity that would drag down not just Wall Street investment houses but possibly the savings and portfolios of millions of Americans. Opponents said the bill was cobbled together in too much haste and might amount to throwing good money from taxpayers after bad investments from Wall Street gamblers.

Now what?

Meanwhile the Republicans are blaming the Democrats for not getting enough Republicans to vote for the plan.

They’re apparently serious; Minority Leader John Boehner (R-OH) is saying that Speaker Nancy Pelosi gave a “partisan” speech that turned off Republican votes. Here’s the speech. You make the call.