Bailout Economy

The House Kills the Bailout Package – Dow Plummets 777 – UPDATED

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Not even close: 207 to 228
Here’s the breakdown: 141 Democrats voting yes; 94 no; 66 Republicans yes; 132 no. One member not voting.

LA Times has live blogging of the sequence of events.

WSJ BLOG – DEAL JOURNAL: “Ahead of the effort, Wall Street was lobbying like there’s no tomorrow. (Which, considering the history of the past three weeks, there may not be.)” (Their opinion, not mine)

Here’s the roll call.

Those voting against are an unusual mix: In California, for instance, Barbara Lee, Lucille Royball-Allard, Grace Napolitano and Darrell Issa are among the NOs. Henry Waxman was a yes. Brad Sherman a no.

Irritatingly enough—according to the LA Times live blog, Republs are blaming Dems, Dems are blaming Repubs…..and partisanship has kicked into overdrive.

Republican John Boehner just told WaPo that there will be no more votes. Members are headed for the airport for recess. ” Boehner said he had no idea when there could be a new vote. This appears not to be true.

Okay, I admit I’m secretly relieved (and surprised) the thing has gone down in flames—at least until there are improvements. When the best thing that could be said about this plan is that “it’s better than it was”—-why is that a good reason to roll the dice with our future?

I turns out, as Brad Sherman just said on KPCC, the country is not as stupid as the Bush adminstration thinks.

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PREDICTION: This news will benefit Obama. Bigtime.

The Republicans killed this bill. But John McCain pushed all his chips to the middle of the table and said that his flight to Washington was the thing that helped make the deal. The fact that he could not persuade his own party is now a big problem for him, and no amount of blaming Obama can fix it.

14 Comments

  • Let’s go back to Hoover again (I mentioned him in a previous comment). He tried this exact thing during the Great Depression and it did not work. His administration formed the NCC (National Credit Corporation), encouraging larger banks to extend loans to smaller banks to prevent them from collapsing. The problem was, two years into an economic crisis, the NCC was ticklish about providing loans to smaller financial institutions — unless they provided their largest assets as collateral. The plan did not work, of course, and was abandoned, I believe, within one year.

  • How can this benefit Obama, who chose to continue to divide the parties and to campaign in other states rather than return to Washington to do his job? Obama provided absolutely no leadership on this and avoided making a contribution and taking a stand. This is what you get with Pelosi and Obama–no leadership and no solutions. Pathetic.

  • From Washington Monthly blog:

    This afternoon, responding to the economic crisis, the Obama campaign issued a statement calling for calm, encouraging lawmakers to keep working, and urging investors not to panic. The McCain campaign attacked Obama. It’s a reminder that one can tell a lot about a person’s character by how they respond to adversity.

  • Unfortunately for McCain, I think this ups the ante on the Veep debate because the domestic issues just got more complex and critical and reporters are looking to pounce. Watching Palin bullshit her way through this is likely to be painful. I anticipate a rhetorical strategy of “populist demagogue” that will unravel before our eyes as the questions get more serious and the talking points jumble together. I’m glad a woman is moderating this thing or it could get really ugly.

  • McCain wasnt even in DC for the vote. He was in the middle of his “suspended campaign”. Giving a campaign speech in Ohio. McShame pulled a circus stunt, a BAD circus stunt at that. And he dropped it when it failed to get him up in the polls or out of the debate.

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