REJECTED! BAILOUT BILL KILLED IN THE HOUSE

The $700 Billion bailout bill, intended to prevent further economic collapse has just failed in the House of Representatives.

I think it’s interesting at this point to note that this bill did not fail strictly along partisan lines, with significant numbers from both parties both voting for and against the bill, indicating at this point that both support and opposition to this bill has been relatively bi-partisan.

It’s tough to say where we go from here.  Economists can’t even agree if the bailout is an absolute necessity, and even if it is, it is clearly not a palatable dose of medicine to the taxpayer who will be forced to shoulder the burden for Wall Street’s failures.

What should be expected, though, is that from here on out, things are going to get decidedly more partisan, especially if an alternative solution is sought before the November 4th elections.

Meanwhile, on Wall Street, apparently the Dow Jones has dropped significantly, though it is up from an initial dive of 700 points.

Scary times, but I think the first question that should probably be asked and answered is; is a solution necessary within the next month and a half?  I’m not exactly convinced that government even has an answer that can fix what’s going on, and even if it does, that answer is not likely to fill too many folks’ heads with images of rainbows and unicorns.

With the presidency, a third of the Senate, and the entire House on the ballot just a few weeks away, no one wants to get stuck with holding a bag of bitter medicine making now not exactly the optimal time to try and work out a solution.

6 Responses to “REJECTED! BAILOUT BILL KILLED IN THE HOUSE”

  1. tas says:

    Quarter to 4 and Dow is still down 700 points..

    This is like giving a horny sailor a strip tease. We’ve talked about the bailout for so long now that it’s basically manifested itself into a reality that has to happen. Markets never really pay attention to reality-reality; just perception. For example, if a company like McDonalds is hugely profitable, we would think that’s a success, right? Not the markets, though — a company must continue to grow, otherwise they’re in trouble. That’s perception; and common perception this past week has been that a bailout it coming. If these (oh, how do I term it nicely? calling them “business school rejects” certainly wouldn’t be nice) ..traders.. don’t get their precious bailout, then we’ll all be guessing where the bottom is.

    As I wrote this comment, Dow jumped back up 100 points. So now it’s 600. Again. Could be 800 points down a couple minutes from now — who knows?

  2. Jeez.

    And here’s the thing. I tend to feel typically far removed from what happens on Wall Street because I enjoy some of the most secure employment available in the country. But when I start to get worried, and when I start to feel, okay, maybe this is going to get uncomfortably close for me too, that’s in and of itself worrisome.

  3. same as it ever was says:

    The Wall Street Bailout Bill:
    Bush McCain Obama et al.

    The Realignment Of American Politics:
    Anderson Baldwin Carter Choate Clemente Gonzalez Gravel Kaptur Kucinich McKinney Nader Paul Perot Sheehan Ventura

  4. tas says:

    Same.. For the people saying that we should vote new and different people into office, I don’t disagree… But right now there’s a crisis. Sure, the usual suspects got us here and should be punished for it, but we also need them to get us out of this mess. Right now.

    Kyle: It goes deeper than job security, though. When the banks stop loaning money, that’s it. Game over. It will effect everybody. For example, you may keep your job but good lucking getting any home loans, or a car loan if you need another vehicle, a mortgage if you need to move, etc. For me, I’m a student and this has me worried that I’ll be saddled with all the debt I’ve already accrued in college and no degree because if I lose my loans before graduating… And without a degree, how would I recoup the costs?

    Everybody has their own story in this situation — it effects everyone. When people like me or anybody else say that the next depression could start if we don’t do something to fix the markets now, it’s not hyperbole. Personally, I hate these bailout bills, but one has to go through or we’re all going to be fucked.

    The fact that the House Republicans, in the face of this knowledge, reject the bill on partisan and grounds of supposed conservative-capitalist principles, is really quite shocking. These people can’t be adult enough for one minute to swallow their pride? What a bunch of whiny fucking children.

  5. Sean Michael says:

    I read the bailout plan, all 110 pages. I told everyone of my representatives if they voted for it, I would vote them out of office. The American taxpayer is not going to foot this bill. Paulson needs to be fired and is in bed with Wall Street. He has gotten it wrong for the past three years and will continue to get it wrong. The markets need to be freed up with some liquidity, but not taxpayer liquidity! Thank goodness for the House Republicans and Democrats…now there is time to get a plan in place that will actually work. They need to come up with a plan that holds Wall Street accountable by providing loans with interest and insurance on these MBS. So before you start telling us what you think we don’t get…think again because we totally get it and look to Paulson as the one who doesn’t get it! We would rather suffer now than have our children pay for this later! So we totally get it! Those who vote for the Bailout, in spite of their constituents expressed desires, will suffer the consequences.

    This is the E-mail for my so called senators and representatives: I make this solemn promise to do my best to ensure the defeats of every member of congress who votes for the Bailout. Those of you who have enjoyed my support in the past, will see an active participant in the attempt to see you removed from office, should you vote for this abomination.

  6. Jack Ferguson says:

    The ticket to this soap operat will only cost you $6,300. What a deal! Bad actors, cheap makeup, crying, whining, begging, fear mongering, and much more. Step right up, you might even get a pass to the ranch after the term, and see them having a great time spending our money.

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