Flash: House rejects bailout package, market dives

Posted Sep 29th 2008 1:57PM by Sarah Gilbert

The U.S. House rejected the $700 billion financial services industry bailout package. Earlier today, the Dow Jones Industrial Average fell 700 points to a low of $10,438.01, but by the time of the vote had recovered to the $10,670 range, about 4% decline, or $450. As soon as news of the failed vote was released, the market began falling.

Update: Initial reports were that the bill failed but the house is voting again via electronic vote. Now the market is falling further, about 575 points down.

Update 2:25 p.m.: The revote failed as well. Here is Peter Cohan's take on the bailout bill.

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Reader Comments (Page 1 of 1)

9-29-2008 @ 2:07PM

william lindblad said...

Those sitting in Congress know WHO elects them. Those people voted NAY may get to keep their seat and the ones that voted YEA shall be ever reminded by their opponent.

It is about time that the greed of Wall St. is not supported by the taxpayer.

To those that made this problem:

You made - YOU fix it.

9-29-2008 @ 2:45PM

Ron Fava said...

Barney Frank, Chris Dodd, and all the other Democrats who made Fannie Mae and Freddie Mac buy 100% financed mortgages so that "everyone can own a house", even if they can't afford to pay the mortgage, are the ones who broke it.... I find it unlikely that they will fix it.

9-29-2008 @ 3:12PM

JCH said...

Nay vote - exceedingly dumb.

9-29-2008 @ 2:47PM

Mike said...

I agree with William Lindblad. You made the problem, now you fix it, just like you did in 1929! That'll show you Wall Street types.

Meanwhile, back on the farm...

9-29-2008 @ 3:07PM

HOOSIERS FOR FAIR TAXATION said...

Not to worry...let the market fall. This is the best thing that could happen.

Congressman Pence from Indiana wants to lift captital gains tax. This will cause massive investment in the market. Believe it or not, there are lots of people with money who want to invest. They're just waiting until it hits rock bottom to pounce.

IT's going to be bad, yes. But not as bad as reducing Americans to become sharecroppers to the Fed.

Tell Congress to CO-sponsor HR2755...the Act to Abolish The Federal Reserve Bank.

9-29-2008 @ 3:15PM

Bryant Arms said...

Bailing out the financiers by buying bad debt is like trying to save a sinking ship by building higher decks. The holes in the bottom need to be plugged! It should be obvious that by helping distressed Americans, duped into buying loans they couldn't afford, pay their debts the well educated financiers would then automatically get paid too.

Our politicians are dumber than the fools who borrowed too much...!