Post by psychecc on Sept 29, 2008 15:07:35 GMT -6
Well, now we'll have a few days at least to see what really happens without a bailout. The reaction on CNBC has been a lot of upset over their belief that people just don't understand what's at stake here.
I've heard a number of times that 700 billion isn't enough to accomplish Paulson's goal anyway. It seems like throwing good money after bad, but I think they will eventually pass something. Corporate America will demand it, and we are, after all, a Fascist nation. Link to full article follows.
Bailout Plan Up in the Air After House Rejects Bill
By CNBC.com With Wire Reports
| 29 Sep 2008 | 04:38 PM ET
Democratic leaders pledged to try to put together another financial rescue bill, but it was unclear whether there was enough support for even a revised plan.
Congressional staffers told CNBC that there wouldn't be any votes on a new bailout proposal until Thursday at the earliest.
House of Representatives Speaker Nancy Pelosi said she was prepared to work in a bipartisan way with Republicans to get financial bailout legislation approved.
Pelosi, a Democrat, also told reporters she spoke to U.S. Treasury Secretary Henry Paulson soon after a $700 billion bill to jump-start stalled capital markets was rejected by the House in a vote of 228-205.
Stocks plunged on Wall Street even before the vote to reject the bill was announced on the House floor. The Dow Jones Industrial Average closed down about 600 points. [closed 771 down]
The failure of the bailout bill—after more than a week of intensive closed-door negotiation intended to hammer out a compromise plan—brought new uncertainty about the response of the government to the worst financial crisis since the Great Depression.
President Bush was set to huddle with economic advisers to consider the administration's next move after the White House failed to win support for the bailout plan from Bush's fellow Republicans.
"There's no question the economy is facing a difficult crisis that needs to be addressed,'' White House spokesman Tony Fratto told reporters.
The bailout plan was announced by the Bush administration last week. In the end, Republican House members voted against it by a more than 2-to-1 margin. A majority of Democrats voted in favor.
Rep. Barney Frank, a Massachusetts Democrat who helped craft the bill in hours of negotiations with leading lawmakers, said the next step could hinge on the economic fallout from the bill's failure.
Capping three hours of debate, House Majority Leader Steny Hoyer of Maryland had warned lawmakers that the cost of inaction would be an economic calamity beyond Wall Street.
"A meltdown would begin, it is true, on a few square miles of Manhattan, but before it was over, all of us know, no city or town in America would be untouched,'' Hoyer said.
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.
They found only two.
....
The version that was up for vote Monday was the product of marathon closed-door negotiations on Capitol Hill over the weekend.
"We're all worried about losing our jobs," Rep. Paul Ryan, R-Wis., declared in an impassioned speech in support of the bill before the vote. "Most of us say, 'I want this thing to pass, but I want you to vote for it—not me.' "
With their dire warnings of impending economic doom and their sweeping request for unprecedented sums of money and authority to bail out cash-starved financial firms, Bush and his economic chiefs have focused the attention of world markets on Congress, Ryan added.
....
URL: www.cnbc.com/id/26944410/
I've heard a number of times that 700 billion isn't enough to accomplish Paulson's goal anyway. It seems like throwing good money after bad, but I think they will eventually pass something. Corporate America will demand it, and we are, after all, a Fascist nation. Link to full article follows.
Bailout Plan Up in the Air After House Rejects Bill
By CNBC.com With Wire Reports
| 29 Sep 2008 | 04:38 PM ET
Democratic leaders pledged to try to put together another financial rescue bill, but it was unclear whether there was enough support for even a revised plan.
Congressional staffers told CNBC that there wouldn't be any votes on a new bailout proposal until Thursday at the earliest.
House of Representatives Speaker Nancy Pelosi said she was prepared to work in a bipartisan way with Republicans to get financial bailout legislation approved.
Pelosi, a Democrat, also told reporters she spoke to U.S. Treasury Secretary Henry Paulson soon after a $700 billion bill to jump-start stalled capital markets was rejected by the House in a vote of 228-205.
Stocks plunged on Wall Street even before the vote to reject the bill was announced on the House floor. The Dow Jones Industrial Average closed down about 600 points. [closed 771 down]
The failure of the bailout bill—after more than a week of intensive closed-door negotiation intended to hammer out a compromise plan—brought new uncertainty about the response of the government to the worst financial crisis since the Great Depression.
President Bush was set to huddle with economic advisers to consider the administration's next move after the White House failed to win support for the bailout plan from Bush's fellow Republicans.
"There's no question the economy is facing a difficult crisis that needs to be addressed,'' White House spokesman Tony Fratto told reporters.
The bailout plan was announced by the Bush administration last week. In the end, Republican House members voted against it by a more than 2-to-1 margin. A majority of Democrats voted in favor.
Rep. Barney Frank, a Massachusetts Democrat who helped craft the bill in hours of negotiations with leading lawmakers, said the next step could hinge on the economic fallout from the bill's failure.
Capping three hours of debate, House Majority Leader Steny Hoyer of Maryland had warned lawmakers that the cost of inaction would be an economic calamity beyond Wall Street.
"A meltdown would begin, it is true, on a few square miles of Manhattan, but before it was over, all of us know, no city or town in America would be untouched,'' Hoyer said.
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.
They found only two.
....
The version that was up for vote Monday was the product of marathon closed-door negotiations on Capitol Hill over the weekend.
"We're all worried about losing our jobs," Rep. Paul Ryan, R-Wis., declared in an impassioned speech in support of the bill before the vote. "Most of us say, 'I want this thing to pass, but I want you to vote for it—not me.' "
With their dire warnings of impending economic doom and their sweeping request for unprecedented sums of money and authority to bail out cash-starved financial firms, Bush and his economic chiefs have focused the attention of world markets on Congress, Ryan added.
....
URL: www.cnbc.com/id/26944410/