Billout bill fails in the House

Posted by: ST on September 29, 2008 at 1:58 pm

Via AP:

WASHINGTON – The House of Representatives rejected a $700 billion bailout today following extended debate where many members, including some who brokered the deal with it, was highly unpopular.

The preliminary vote was 185-197. Members had a limited amount of time to change their votes. Following the deadline, the margin was growing for those opposed to the measure.

Even as the electronic roll call began, Democratic and Republican leaders were uncertain about having enough votes to pass the politically unpopular plan. It’s the most sweeping government intervention in markets since the Great Depression.

The bailout puts in place an unprecedented federal program to buy up rotten assets from cash-starved firms. The goal is to free up choked credit that was threatening to cause broader market turmoil.

“Many of us feel that the national interest requires us to do something which is, in many ways, unpopular,” said Rep. Barney Frank, the Financial Services Committee chairman, before the vote. “It is hard to get political credit for avoiding something that has not yet happened.”

The bill was the product of marathon bargaining over the weekend among various House and Senate representatives.

Hot Air’s tracking the latest developments (more here).  I’ll be back later tonight to catch up on all this.

RSS feed for comments on this post.

16 Responses to “Billout bill fails in the House”

Comments

  1. Lorica says:

    Good, until they tie any realized profit from this investment to the debt instead of giving these drunken sailors more money to waste, I hope this continues to fail. – Lorica

  2. Mwalimu Daudi says:

    Good news: The failed “bailout” bill has the Messiah’s, Pelosi’s, and the Democrats’ fingerprints all over it. Looks like New/Fair Deal: Part Gazillion and One is dead, which should do wonders for the favorable ratings of the Worst Congress in History! The irony is that Democrats have their own mind-destroying demagoguery about “Wall Street bankers” to blame for this debacle.

    Bad news: The failed “bailout” bill has Bush’s, McCain’s, and the GOP’s fingerprints all over it. Remember that Bush is the political father of the monstrosity called New/Fair Deal: Part Gazillion and One. Also remember that the political party that holds the White House (especially if the name of that party begins with an “R”) gets almost all of the blame – fair or otherwise. Memo to all Republican candidates: Start running against the “bailout” bill and the Democrat-controlled Congress. Now.

    Once President Bush leaves office this embittered G*d-and-guns-clinging typical white person will miss him on the issues of taxes, terrorism, the Iraq War, and the Supreme Court. On all other issues – not one itsy-bitsy teeny-weeny tiny little bit.

  3. Bachbone says:

    Both McCain and Obama have been less than forthcoming on how they really feel about this bailout. In Glenn Beck’s lingo, they’ve both been a “crapweasel.” Just what I’d expect from both. I’m waiting to see how they vote when the Senate convenes. McCain is pounding nail after nail into his own coffin as far as presidential hopes go. I hope he doesn’t hammer another one over this matter.

  4. Nina says:

    Why don’t you publish a list of PAC’s and 527 ‘s that are pushing our ideas so we can contribute. See what happens when we stick together!!!

    Someone needs to expose in ads the videos of the democrats trashing the regulator,Franks and Dodd. The average person doesn’t read blogs and they need to find out who created this mess.

  5. Great White Rat says:

    “It is hard to get political credit for avoiding something that has not yet happened.”

    Another insight into the liberal mindset. What’s important to Barney? Political credit. Whether this financial mess ever gets straightened out isn’t all that important. The overwhelming question in the minds of the left whether they can spin whatever happens to their political benefit.

    Anyway, Barney can at least feel secure in the fact that he might not get political credit for something that hasn’t happened, he is likely to avoid political penalties for his considerable role in creating the problem in the first place.

  6. Baklava says:

    Looking back:
    Subprime (teaser rates) loans should be outlawed. Having a lower payment initially with nothing down does nothing but increase risk for the lender and borrower.

    Going forward:
    A house payment should still be required to be paid. Just because a house is worth less than the amount of the loan does not make a bailout necessary.

    What makes the bailout necessary is the crippling effect of the percentage of people who have left their homes and stopped paying their loans.

    How to fix that?
    1) Reduce capital gains taxes to very little – capital will flow to the properties that are a good bargain right now (this is how Rockefeller gained many of his assetts in the Great Depression – buying low)
    2) Reduce taxes on ALL americans especially the top brackets.
    3) Reduce business taxes

    Having the government SPEND money is the wrong answer to the problem as it is socialism.

    Socialism is the government choosing who gets what resources.

    Capitalism defined is the PEOPLE choosing who gets what resources. Ultimately, the people choosing who gets what resources is what’s needed here. People will get great deals on property, the economy will grow, jobs will be created….

  7. Steve Skubinna says:

    Nice ideas, Bak, but subprime loans exist not because the banks like giving away money to high risk applicants, but because the politicians strongarmed them into doing them. They won’t be made illegal by the same corrupt whores who decided to purchase votes with your money. This mess was created by the pols, in fact mainly the same ones now wrapping themselves in the mantle of William Jennings Bryan and pointing fingers everywhere but at themselves.

    Pelosi sabotaged this vote. Whether she did it accidentally – Lord knows she’s stupid enough – or deliberately I can’t figure out.

    As I said, she’s certainly stupid enough to step in it inadvertantly. A more important question is, is she venal and partisan enough to do it on purpose, to set the stage for an Obama victory, despite the cost to the country? I hate to think any American politician would knowingly cause harm to the country for political advantage, and yet the Dems have provided ample evidence that some of them would.

  8. Leslie says:

    Steve wonders:

    Pelosi sabotaged this vote. Whether she did it accidentally – Lord knows she’s stupid enough – or deliberately I can’t figure out.

    I’d say accidentally. At least I hope so. What kind of leader puts a measure of for a vote when she’s note sure she has the votes to pass it? She flunked LBJ 101. Pathetic.

    Whatever: for all intents and purposes what will be called a hundred years from now the First American Republic ended today. What happens next, God knows.

    John Galt! Please pick up white courtesy telephone at the reception desk. John Galt! To reception please.

  9. Proof says:

    I’m sorry! But “Bailout Bill” makes me think of why Chelsea is an only child!

  10. Severian says:

    With Pelosi, it’s always hard to tell if it’s just gross incompetence or cynical, evil, partisan manipulation, or a combination. She is hands down the dumbest person to ever sit in the Speaker’s chair, and is emotionally incapable of not shrieking that it’s all the Republican’s fault, both because that’s all she does and because she want’s to cover up Democrat malfeasance in this.

    OTOH, a lot of what the Dems wanted got stripped out of this, money to ACORN, bailing out this and that in addition, all those Christmas Tree ornaments. If she were smart, she did this to sabotage it, knowing that she and her fellow Dems, and the compliant media, would paint this as more obstructionism from those EVIL Republicans, knowing that if Wall Street tanks, she will be able to stuff all the pork back into the bill and will have Republicans over the barrel as they’ll be panicked into supporting anything after things get worse and the MSM rakes them over the coals for a few more days.

    Hopefully the Republicans will finally grow a pair and tell her to stuff it, and not pass anything as bad as this bill or the original one, not pass it until it protects taxpayers and our money better, and gets some accountability from the Dems and organizations who got this whole thing started.

  11. Baklava says:

    I hear ya Steve

  12. Karma Dancer says:

    The Hubby and I were discussing this when I got home this evening, and he brought up an interesting point.

    It is usually a mistake to assume one’s opponent is stupid. That being said, what did Pelosi hope to gain by torpedoing the bill?

    I know this sounds unbelievably paranoid, and much too close to something that would come from some kind of whacko conspiracy-theorist, but….would it be possible she’s trying, with the help of her cohorts on the left side of the aisle, to force a depression? Are the Dems so desperate that they are willing to sacrifice the entire nation’s economy for the sake of some bitter schadenfreude come 2009, regardless of who takes office?

    Hmm.

  13. Interesting discussion, ya’ll. Power Line examines the possibility that this was intentional on Pelosi’s part here.

  14. Karmadancer says:

    Hey, ST,

    Read the Powerline blogpost and…still feel that the idea Pelosi bombed the bill merely for immediate Dem gains is short-sighted. What she did reeks of vendetta. Or seemingly so. Thanks for posting it anyway!

    What I’d like to know is exactly what’s in these bills. The Exec Summaries are up on the Federal Register page, but the full texts aren’t available yet. I have to admit that what’s most unsettling to me is that I’m having to base my opinions on what other people tell me is in these bills, not what I can see for myself. And not everything one needs to know is contained in those summaries.

    I know better than to think that a bill’s defeat is simple. It never is. What a bill might be titled makes it sound good on its face; but the reason it gets shot down is more likely than not because of pork stuffed in it that is otherwise unrelated to the bill itself. But without reading the bills, it’s hard to know that.

    (*sigh*)
    — kd

  15. Lorica says:

    Tell me this isn’t a fitting irony:

    Agreement Reached At Munich To-Day At 1.30 this morning it was announced in Munich that the Fiihrer, the Duce, the British Prime Minister, and the French Prime Minister had at 12.30 a.m. signed an agreement as to the methods to be adopted in the transfer of the Sudeten Territory. Clearance of areas containing a predominantly German population is to be completed by October 10

    LINK

    There will be peace in our time said Chamberlain 70 years ago today. The promises of the government to the people should always ring hollow. – Lorica