House Rejects Bailout For US Financial Markets - Financials * US * News * Story - CNBC.com

cnbc.com — The House rejected a $700 billion Wall Street bailout bill Monday that administration officials said was crucial to avoid a broad economic collapse.

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Comments (33)

- exMixxer
Communism at its worst.
- (1 Kudos received)
1. - fkovacs24
  @piattorneys
  Hey-- why were the American People led to believe that the" bailout" was to be a NEW bill brought before the House and the Senate.
  They were SUPPOSED to be voting aye or nay on an Act entitled " The Emergency Economic Stabilization Act of 2008. I see that NOWHERE in the Title section.
  Instead, again we are lied to , and they tried to play fast and loose with the US Tax Codes. PLEASE look at the date that this bill ( below) was passed by Congress. If my eyes do not deceive me, it was 1986. This is an amendment to an amendment, NOT a bill.
  Why did the media and all others concerned not bring this to the attention of the American people that this, in fact, was NOT something new, but was just another politically motivated sleigh-of-hand trick with OUR money.
  Shame, shame, CNN, FSN, John McCaine and Barack Obama. Do you REALLY think we are that stupid?
  
  FINAL VOTE RESULTS FOR ROLL CALL 674
  (Democrats in roman; Republicans in italic; Independents underlined)
  H R 3997 RECORDED VOTE 29-Sep-2008 2:07 PM
  QUESTION: On Concurring in Senate Amendment With An Amendment
  
  BILL TITLE: To amend the Internal Revenue Code of 1986 to provide earnings assistance and
  tax relief to members of the uniformed services, volunteer ﬁreﬁghters, and Peace Corps volunteers,
  and for other purposes
  - (2 Kudos received)
- vip
Wow, so i'm watching CNBC and it seems the Republicans do not want this ... 133 voted no ... to the 94 Democrats that voted no.
- (0 Kudos received)
- ajmm77
I kept thinking people were being ridiculous when they were calling it the 2nd Great Depression. Now I'm not so sure.
- (0 Kudos received)
1. bizdevlead left a comment and deleted it .
- y2000
The bailout is needed...please everyone try to avoid a knee-jerk reaction to the bailout. I know it sucks but there are very very serious repercussions if credit stops flowing and this is what will happen if this doesn't pass.
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1. - mortalwind
  @y2000 The market has to correct itself at some point. We should suck it up and not let the goverment put another bandaid on it. Otherwise we are just passing this dogs dinner onto are kids and thier kids.
  - (0 Kudos received)
2. - y2000
  @mortalwind Hey I understand your concern...but I think it's necessary at this point to avoid more serious issues. I posted my thoughts at the end of the thread.
  - (0 Kudos received)
- weeklyworldnews
Where are headed.. seriously?! The bailout is certainly needed!

Can't rely on good old Bat Boy to do it...

http://www.weeklyworldnews.com/celebs/bailout/
- (0 Kudos received)
1. - fkovacs24
  @weeklyworldnews
  
  With what we have in office right now, I'd trust the Bat boy more. You can quote me on that. PS-- can I be known as Yolanda Bennett of Sandusky, Ohio when you write up the article "Bat Boy Addresses Congrress With Bailout Solution"? I'd appreciate it.
  - (1 Kudos received)
- xxxflw
What's up with 40% of the Democrats who voted NO?
- (0 Kudos received)
- Nahara07
ladies & gentlemen... it is time for change... if we allow this government to sink us into depression we will be vulnerable to all the countries we have angered over the years and most urgently the ones who are mad at us now... iran, iraq, afghanistan... we are in SERIOUS trouble. Forget not our rights as American citizens...

We hold these truths to be self-evident, that all men are created equal, that they are endowed by their Creator with certain unalienable Rights, that among these are Life, Liberty and the pursuit of Happiness. — That to secure these rights, Governments are instituted among Men, deriving their just powers from the consent of the governed, — That whenever any Form of Government becomes destructive of these ends, it is the Right of the People to alter or to abolish it, and to institute new Government, laying its foundation on such principles and organizing its powers in such form, as to them shall seem most likely to effect their Safety and Happiness.
- (1 Kudos received)
1. - fkovacs24
  @Nahara07
  "whenever any Form of Government becomes destructive of these ends, it is the Right of the People to alter or to abolish it, and to institute new Government, laying its foundation on such principles and organizing its powers in such form, as to them shall seem most likely to effect their Safety and Happiness."
  ----------------------------------------------------
  And this is why we need to DEMAND TERM LIMITS ON SENATE AND HOUSE SEATS. No more Good Old Boys Networks that are part of this problem.
  
  But we as Americans need to change, too. We need to stay involved in what goes on around Capitol Hill. No more of this apathy until Super Tuesday when patriotism is shown by a flurry of ballot box stuffing, followed by a complete lapse of follow-up on the people WE put into office.
  Sure, legislation is as exciting as watching hair grow, but it's needed to keep this kind of thing from happening over and over.
  Martin Luther King said it best- " The greatest sin of our time is not the few who have destroyed but the vast majority who've sat idly by".
  - (0 Kudos received)
- dan360man
Well, it's easier for politicians to say that they voted against Bush than to explain why they voted for the bailout, which may be a good thing in the end.

Easier to explain in a 30-second ad, that is.
- (1 Kudos received)
Camp left a comment and deleted it .
- bizdevlead
I WAS SO WORRIED FOR YOU GUYS!!

From: Your friend in Canada

The house rejecting the bailout is more than GREAT NEWS, I can not believe it. America has a "future" I thought you guys were FINISHED.

I compare this news to when my nation(Canada) was waiting to hear if we would or would not join you guys in IRAQ. All Canadians were so glad we never went to IRAQ, look at the war now.

Like IRAQ this bailout is a BOGUS!!

Do not listen to the same "CROOKS" that scared you into a war that is BANKRUPTING your nation at the speed of light.

It is sad that some members of your government would try to establish a fund to bail out "failing" corporations and it has never taken the time to establish a "universal health fund" for all Americans rich or poor to be eligible for health care when they need it. I live in Canada, everyone has health care and I am sorry no matter how I look at it, I can't picture life without health care for all. THERE IS NO EXCUSE!!

It is stuff like the bailout plan that makes the rest of the world just wonder about America.

Do not listen to Warren Buffet, I am actually very disappointed in him, I actually thought he was a nice old man but he is a subtle CON!!. I am no longer a fan!!. He is playing the same role as Colon Powell before the war "there is danger and I am the experienced guy to tell you so be scared and accept our plan" "f___ off". Its just a way for him to become a 100 Billionaire, yeah thats right I said that, after this admin I wouldn't be surprised if someone is that rich in the world. He knows whats going on and what direction rich folks want to go. Just think, why are all these guys like him and Bill Gates dumping so much US money and buying Euros and Gold, oh yeah thats right they are giving it to charity and stuff, yeah OK whatever.

The bailout would make America too vulnerable in the event something happens in "Asia" the economy that "owns" and "controls" the American economy out of "debt". CHINA and JAPAN will just watch you perish and never bail you out (especially if you take on the $700B). While the same "fat cats" on wall street are and will move to Dubai or something, cash in their Euros / gold. Do not fall for the scam!!

KEEP your head UP AMERICA the stocks will tumble, things may get tight but you will survive and Barack Obama will get support from the GOOD PEOPLE OF THE WORLD to put you back together.

I give him credit, why would anyone want to be the president of America right now.

I never get political but I cant stand watching you guys get ABUSED.
- (0 Kudos received)
1. - fkovacs24
  @bizdevlead
  Thanks, friend in Canada! And now they are calling us who say "No Bailout" crazy because we refuse to foot the bill while these Wall Street executives who gambled their money won't put theirs where their mouth is now. Nice to know that the world doesn't think the average Joe is nuts for saying "enough is enough".
  The problem is that I would probably have been all for it if they just came to us REALISTICALLY, with actual numbers to show us. Where was this money going precisely? How much do you REALLY need? Who is getting the benefit of it, exactly? Why aren't the rich putting up their money? No, Paulson did it by simply pulling a really huge number out of his ass, insisting on absolute control over it, and inciting fear on everybody. All I really ask is that my government be fair and DON'T LIE TO ME.
  - (0 Kudos received)
2. - bizdevlead
  @fkovacs24
  
  No your GOVERNMENT preys on the ONE thing the whole world knows you have and admire "TRUST". Americans believe and "TRUST" thats how you have built great things, gone to the moon, your great inventions etc. no one can list all of your achievements. Instead your leaders choose to do strange things and tell lies knowing its in your DNA to follow those you trust.
  
  I have done business with Americans and there is no SWEETER partner than an American. I can propose any RADICAL business idea in America and people will follow me to make it happen but back home here in Canada its hard to open up a lemonade stand without insults.
  
  There is that old saying... ONLY the people you TRUST can hurt you.
  
  Our government (Canada) does not "dare" say such things our last Prime Minister was a hero (kept us out of IRAQ) but we threw his entire party out for messing around with a mere $200M just to prove a point "they" work for us and should not think they are "royalty". We keep our new guy on his toes, he does alright financially but he is culturally insensitive.
  - (0 Kudos received)
- Mr_Plainview
Folks, the bail out is NOT a good thing. It simply keeps the value of bad assets up artificially. What happens when the banks get their money from the FED? All those assets are still in the market, continuing to push prices down, because no one is willing to buy at these prices. Listen to Ron Paul as he explains we need to deal with this issue now, not drag in on like the bail out would do. Pumping that much more money in the system will increase inflation and make it harder for average folks to live. You savings, your money will be worth far less. As for the 700billion, the banks will take that money, lend it to each other and their large clients, leaving nothing for 'main st'. Even if there is money left, most of you will not be able to qualify as their requirements will be too restrictive. It is time to rip it off like a band-aid and let the company's who made this bad decisions pay for it. Then whatever we have left, we know, will be viable businesses....Time to cut the dead weight instead of enabling it.....

http://thewoodlawnreview.wordpress.com
- (0 Kudos received)
- c_jj2
I'm glad there is an election coming. And hopefully someone will post who voted with Bush to pass the deregulation that got us here. I say get the broom out! Enron et al... was a wake up call. Phil Gramm initiated that mess. An illustration that proved itself ill conceived. So instead of using some intelligent regulation the Bush Administration continued down that Gramm path of deregulation with the support of many. So now we have to pay the piper. And it won't matter who's going to pay for it because everyone will one way or the other. Either directly with oversite throught a bailout of somekind or through the banking system through higher premiums in the FDIC or FSLIC who pay the premuims. The treasury will get involved when the FDIC or FSLIC insurance companys run out of money. Where does the Treasury money come from eh? So if the banks have to pay more who do you think they are going to charge. Depositer, and higher loan percentage rates.

If we are smarter now than we were and let a bailout happen with oversite and no golden money for CEO's we may stand a chance. If not the tipping point is probably not far down the road since many forcasts say there will be a total of around 110 banks to fail. This would completely stifle the credit market. Then we will be in trouble. Keep in mind though that the 700 Billion is probably just a start. Bush hasn't got any of his other estimates right yet and has low balled just about everything. Like not enough troops in Iraq so we could do it right the first time, later declaring his surge a success. Give me a ******** break

Hacked off Citizen Taxpayer, Worker, Saver.
- (0 Kudos received)
1. - bizdevlead
  @c_jj2
  
  You made a great point the $700B could be an underestimate by that guy "W"
  
  Well there have been talks in the past of the "AMERO" a mexico, us, canada dollar. I was always wondering how and what may or would induce a new currency, "this could be it".
  
  All Ameican Banks may disappear and leave Canadian banks that are "untouchable"(regulated).
  
  You will see more Canadian banks open up across the U.S. We only have 6 "banks" LOL
  
  The fact that your banks are private(unregulated) is the "first problem", only in America :)
  - (0 Kudos received)
- xxxflw
Bailout--Credit freeze--Economy coming to a standstill or worse!
Why is not the discussion about our apparent total dependence on credit?
If our economy is totally dependent on credit there is no hope for us. It’s just a matter of time
- (0 Kudos received)
- Richien
I heard Barney Frank say on TV that McCain couldn't get together enough votes to pass it. If that is true, why did 90 Dems not vote for it? A bailout stinks. This is a play by the socialists to take over business.
- (0 Kudos received)
1. - bizdevlead
  @Richien
  
  Are you sure its not capitalists at the control of the wheel using your nations resources like a genie?
  - (1 Kudos received)
- fkovacs24
Hey-- why were the American People led to believe that the" bailout" was to be a NEW bill brought before the House and the Senate.
Instead, again we are lied to , and they tried to play fast and loose with the US Tax VCodes. PLEASE look at the date that this bill ( below) was passed by Congress. If my eyes do not deceive me, it was 1986.
Why did the media and all others concern not bring this to the attention of the American people that this, in fact, was NOT s omething new, but was just another politically motivated sleigh-of-hand trick with OUR money.
Shame, shame, CNN, FSN, John McCaine and Barack Obama. Do you REALLY think we are that stupid?

FINAL VOTE RESULTS FOR ROLL CALL 674
(Democrats in roman; Republicans in italic; Independents underlined)
H R 3997 RECORDED VOTE 29-Sep-2008 2:07 PM
QUESTION: On Concurring in Senate Amendment With An Amendment

BILL TITLE: To amend the Internal Revenue Code of 1986 to provide earnings assistance and
tax relief to members of the uniformed services, volunteer ﬁreﬁghters, and Peace Corps volunteers,
and for other purposes
- (0 Kudos received)
- valentinesday
Last I heard, Republicans voted against the bill after Pelosi gave a speech which attacked the Bush administration. Our elected officials still playing politics.
- (1 Kudos received)
- dandan111
The links in this are amazing:

WHAT exactly does a “community organizer” do? Barack Obama’s rise has left many Americans asking themselves that question. Here’s a big part of the answer: Community organizers intimidate banks into making high-risk loans to customers with poor credit. In other words, community organizers help to undermine the US economy by pushing the banking system into a sinkhole of bad loans. And Obama has spent years training and funding the organizers who do it.

THE seeds of today’s financial meltdown lie in the Community Reinvestment Act - a law passed in 1977 and made riskier by unwise amendments and regulatory rulings in later decades.

Now, as Rev. Wright said, the chickens have come home to roost
- (0 Kudos received)
- y2000
Hello everyone, I also think the bailout stinks and It's not right that the taxpayers have to foot the bill but simply saying no way just to "teach wall street a lesson" is poor economics and will lead this country down the wrong path.

Failing to pass the bailout will harm everyone not just wallstreet. You may not see it as consumers yet but credit is drying up for businesses of all types. This means no new expenditures, new hiring, and eventually layoffs. We are talking about regular peoples lives here. The invisible hand doesn't always work and sometimes intervention is needed. We are in way too deep for the market to "correct itself"

In the early 90s Japan refused to intervene in their own crisis and they experienced a 10 year recession. The government finally got wise and now they are on the right tract. Don't let this happen to the US.

The main reason some politicians voted NO was because they are up for re-election and they don't want to anger their constituents who are very ill-informed when it comes to economics. Let's put our pride to the side and do what's best for those unable to whether the storm. For justice lets demand as voters that both the Dems and Repubs truly regulate the proper industries and re-instate The Glass-Steagall Act. Peace....
- (0 Kudos received)
1. - bizdevlead
  @y2000
  
  I sort of disagree American's MUST say NO, teach Wall Street a lesson and there is no need to worry such actions would be "RICH ECONOMINCS".
  
  You need to think outside of the "BOX" the world is a big place.
  
  I am not from the U.S. and can tell you there are TONS of people ready to dump TONS of money into the U.S. Just as you know "people" invest in "people" and the current "people" you have in power are not worth investing in and DETER a lot of people and business from your country.
  
  I personally would have moved to the states long time ago but i couldn't live under the rule of your current folks they are just gross.
  
  If your countries foreign relations improve and you get out of this FICTITIOUS fear of countries that pose no threat and are full of citizens who "love you" like CHINA and IRAN, yes I said that, they do. Americans need to stop fearing people and DEALING with them. your current admin just makes you fear anyone who they sort of don't "control" or any nation that has resources one of your corporations want especially OIL. That is all your foreign policy is based on.
  
  If you improve it the "real" richest nation on earth CHINA "will" invest they have TRILLIONS of your dollars to reinvest.
  
  NO NEED TO PANIC AMERICA
  
  Get back on track and produce what your nation is best at TECHNOLOGY
  
  I thought this was the decade I would see America make cars that fly, cure cancer / aids, peace in the world.
  
  * YouTube and Google aren't enough the world wants more inventions.
  
  Do good things America and everything will follow, where is your faith?
  
  Stop the worrying and be HARD on those elite BUMS.
  - (2 Kudos received)
2. - Tessylo
  @bizdevlead I agree with a lot of what you say. It's like the GWB administration is asking us to give them another blank check to bail out all of the fat cats. Let's let those fat cats sweat it out for a while. I cannot stand the thought of my tax dollars letting these fat cats stay fat. Say NO!
  - (0 Kudos received)
- robotkidalien
The bailout is a total joke.

Banks are hoarding liquidity.
http://www.bloomberg.com/apps/news?pid=20601087&refer=home&sid=avWG5Qugrp2M

That's why, when you file for a mortgage now, you have to put down 20%, submit to a background check, show pay stub receipts from reliable work, have a good FICO score, etc. It is hard to get a loan now. Giving them more money won't solve anything, and that money for sure isn't coming to us, the working class.

The actual bill says "700 billion at any one time." That means the paulson could pull out 700 billion...then another 700 billion, then another and another, till his finger was tired, all without oversight, review whatsoever.
http://www.huffingtonpost.com/2008/09/22/dirty-secret-of-the-bailo_n_128294.html

That's why 700 billion is a joke, and they estimate the real cost would be 5 trillion.
http://www.breitbart.tv/?p=182363

And if anyone thinks money could have been made off this bill, I've got some houses sitting, rotting out in Florida, that you can buy. Don't wait for government. But it your damned self and make the money. More money for you, pal, go ahead, take it! It's all yours.
http://weworkharder.typepad.com/photos/uncategorized/vacant_homes.gif
- (0 Kudos received)
- allencharlesreport
A better plan to stabilize the financial markets is to simply let the Federal Deposit Insurance Corporation take over the insolvent companies and form a holding company and reopen as one large institution. Just as when the FDIC takes over smaller banks the same rules should apply here. The new holding company can then operate the new banks keeping the good accounts and spinning the bad ones to a second operating company to work through them eventually restoring some of them and liquidating the rest. If any legitimate debt holders are established then stock could be issued to these legitimate debt holders ( likely bond holders). After a period of time this new company could do a stock offer selling the entire company back into the private sector. Problems solved, seven hundred billion of tax payers money would be saved. The cost of the new company would be returned back to the taxpayers from proceeds of the sell of the stock at the return to the private sector from government operation. The fat cats on Wall Street could be returned to work for the new company but like all reorganizations at a lower cost to the new company allowing it to return to health much faster.

The changeover could be done over a weekend without any disruption of any kind. Each of the banks taken over would continue to operate under it present name and corporate structure except that the boards would become advisory only with the final authority being held with the new holding company. Over time most of the banks could be either spun off or several combined under a new corporate configuration and then spun off or sold. The stability of the entire banking system would be the most important goal.

The Federal Reserve System looks at all the deposits at all the banks as one total, so this new bank would not alter the loan patterns from what it would be with if all these various banks that would be part of the new holding company were operating separately. All the bad things being claimed by Mr. Paulson would be avoided with this plan and the best part of this plan are NO TAXPAYER costs beyond the administrative cost of the new bank holding company.

This plan takes a second look at the way the taxpayers money is used and avoids benefiting those that caused the problem to begin with. They took unnecessary risk and have lost so the bailout should take the control of the future out of these either corrupt or incompetent executives hands and allow a time out for our banking system to stabilize and get back on track.

The one caveat I have for the new Holding company, which plans to put these bad debt mortgages in, is that a provision in the restructuring should provide a way for people that are in these mortgages to be able to stay in the home. One idea would be to renegotiate the value of the property back to an equity position with the caveat that they could not sell their home, for eight to ten years or some other appropriate time frame. The reason that I would like to see this put into the terms for use of this agency to stabilize the mortgage market is that if something isn’t done the power structure that will be controlling this new agency will likely sell off these homes at a larger loss than leaving people in the homes or working out something for them. If this doesn’t happen many insiders, the money crowd, Wall Street types you know the folks that got us in this mess to start with will come in and buy these properties up for pennies to the dollar at taxpayer expense leaving the homeowner homeless the taxpayer on the hook for the costs and the rest us no better off than we are now. There could be a deed restriction on these homes that required them to pay the proceeds out of the home or of the equity of the home as a penalty for moving too fast. The whole idea for this bailout is to stabilize the mortgage market, financial market, and the economy.
- (0 Kudos received)
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