Breaking: Bailout bill fails, Dow roller-coasters; Update: Pelosi speech added

posted at 2:00 pm on September 29, 2008 by Ed Morrissey

This has to be considered a shocker.  The bailout bill failed in the House, and it wasn’t especially close.  The final tally was 207-226, with Democrats supporting it 141-94, while Republicans opposed it 66-132.

How did the markets react?  Initially, with panic.  Dow dropped from around a -290 to more like a -660, but then recovered within minutes to a -400.  Within a few minutes after that, it rose a little further to about -360, a 300-point gain, but it continued to go up and down, and probably will all day long.

What does this mean?  The Senate can always initiate their own version of the plan and re-send it to the House, but that will take some doing.  Can Republicans change their votes after taking this kind of stand?

If it stands, it will be a repudiation of the leadership in both House caucuses and the Bush administration.  Pelosi couldn’t hold her caucus together, and Boehner, Cantor, Blunt, and Putnam will find themselves in the minority of theirs.

Update:  I guess this puts lie to the notion that an agreement existed before John McCain went back to Washington.  They got more Republicans today than they had last Wednesday, and it still didn’t pass.

Update II: Here’s the speech that probably killed the agreement. Pelosi blamed the collapse on George Bush and a lack of regulation, and called Republicans hypocrites for cheering free-market principles.

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We can blame the GOP all we like, but clearly the Democratic Party did all they could to kill the bill while appearing to support it.

eforhan on September 30, 2008 at 11:37 AM

3 steps to save the nation

mindhacker on October 1, 2008 at 8:40 AM

Emailed Martinez and Nelson in Florida requesting a No vote. Tried to telephone them but their mailboxes are full… gee.. I wonder what those messages say. The only method of contact remaining open are their fax number, so they will each get a fax in a few minutes. The press and pollsters do their best to portray more support for this outside DC and Wall St. than there really is. If support in favor had any strength at all, the contacts of their DC reps/sens wouldn’t be 100 to 1 against.


CapedConservative on October 1, 2008 at 9:00 AM

Just ironic that when capital is drying up n.p. plays politics. Polosi says that this is bush’s problem and that the cogress has to respond. nancy repeated the number 700 billion dollars as a cost of the bush and repulicans failed policies.

Why do i say ironic? The cost of imported is 700 billion dollars a year.

I would suggest in stead of gripping about bush we STOP SPENDING 700 BILLION DOLARS TO BUY IMPORTED ENERGY a part of which goes to our enemies that use our money to kill us.

why is it that the money that most people realize is neccassary to stabilize our economy is more than we can afford and at the same time say that we as americans should not be using the same money in our own economy.

TomLawler on October 1, 2008 at 12:44 PM