Bailout Bill Fails

posted by Christopher Hayes on 09/29/2008 @ 3:04pm

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The bailout bill just went down to a vote of 228-205. According to a source inside the Dem caucus, Rep. Boehner said he could deliver 80-90 votes, but ultimately only 66 R's voted aye. The House Republicans are trying to blame House Speaker Nancy Pelosi for an excessively partisan speech for losing the votes.

Rep. Chris Shays, who voted aye, just said on the steps of the Capitol that "Nancy blew it." A Pelosi spokesperson is having none of it: " "You don't vote on a speech, you vote on a bill."

House Dems are now huddling in the Capitol and it's unclear what the strategy is. One possibility is to just craft a bill that can pass with only Democratic votes, then force the issue on the Senate.

We'll see.

Democracy turns out to be alive and well, even if the Dow isn't particularly pleased.

UPDATE: Here's the Roll Call

Marcy Kaptur says it was an amazing day in the United States Congress. "The American people were heard and fear was put on the shelf."

UPDATE II: Barney Frank on bailout failure: Republicans put feelings ahead of country...

Comments (38)

Pelosi shows some REAL leadership this time!

From AP:

In her speech, Pelosi had assailed Bush and his administration for reckless economic policies.

"They claim to be free market advocates when it's really an anything-goes mentality: No regulation, no supervision, no discipline. And if you fail, you will have a golden parachute and the taxpayer will bail you out. Those days are over. The party is over," Pelosi said.

"Democrats believe in a free market," she said. "But in this case, in its unbridled form, as encouraged, supported, by the Republicans -- some in the Republican Party, not all -- it has created not jobs, not capital. It has created chaos."

Posted by Metteyya at 09/29/2008 @ 3:11pm
er, the DOW goes down 700 points, but the bill doesn't pass and it moves up to 400.

Now it's down to 500.

And it would be doing the same thing if there were no plans for a bail out or if there were 700B injected into the 100T's global trading there to be lost too.

And the moral of this story.

Same as the other story.

Don't believe anything that comes out of a new con repub for dic'tatorship's mouth.

Posted by hsuBfools at 09/29/2008 @ 3:13pm
It's passed and Bush will sign it.

Cases don't matter anymore, Mr Hayes.

Posted by Maskdelta at 09/28/2008 @ 8:56pm

heheh. nothing personal.

Posted by frosty zoom at 09/29/2008 @ 3:14pm
Hell Yes!!

Call your representative....

Tell her or him:

NO BAILOUT!! NO BAILOUT!! NO BAILOUT!! NO BAILOUT!! NO BAILOUT!! NO BAILOUT!! NO BAILOUT!! NO BAILOUT!! NO BAILOUT!!

If Obama (or McCain) wants any easy win in November, they should come out against this porker now.

Hey Katrina, I know you have a direct line to Pelosi. Call her and tell her to stick this BAILOUT of her rich friends in her freaking ear!

NO BAILOUT!! NO BAILOUT!! NO BAILOUT!! NO BAILOUT!! NO BAILOUT!! NO BAILOUT!! NO BAILOUT!! NO BAILOUT!! NO BAILOUT!!

WE THE PEOPLE DON'T WANT IT!!

LLL OOO OOO KKK AAA TTT TTT HHH EEE PPP OOO LLL LLL SSS !!!!!!!!!!!!!!!!!!!!!

WE DON'T WANT NO STINKIN' BAILOUT!!

NO BAILOUT!! NO BAILOUT!! NO BAILOUT!! NO BAILOUT!! NO BAILOUT!! NO BAILOUT!! NO BAILOUT!! NO BAILOUT!! NO BAILOUT!!

Posted by bleedingheart at 09/29/2008 @ 3:16pm
Put in more regulation & oversight.

More specificity as to type of assets that can be bought.

Less money & the total capped, no continual replenishment.

Far more equity, highly specified, viz. the same deal Buffet got from GS. Good enogh for Buffet, good enough for the rest of the American people.

And make the Treasury Dept subject also to all existing laws -- not just the Constitution for certain high level "important" decisions -- for all their actions under the act that's eventually passed.

Then the rest of the Dems will vote for it.

And let W dare to veto it.

Posted by sloper at 09/29/2008 @ 3:21pm
Posted by frosty zoom at 09/29/2008 @ 3:14pm

No, no....very happy to be wrong about this one!

Eric and CKA can now enjoy themselves even more!

Posted by Maskdelta at 09/29/2008 @ 3:24pm
more tax cuts and less regulation for those that run Wall Street.

what other answer could there be?

Posted by crabwalk at 09/29/2008 @ 3:25pm
PELOSI:

"They claim to be free market advocates when it's really an anything-goes mentality: No regulation, no supervision, no discipline. And if you fail, you will have a golden parachute and the taxpayer will bail you out. Those days are over. The party is over," Pelosi said.

"Democrats believe in a free market," she said. "But in this case, in its unbridled form, as encouraged, supported, by the Republicans -- some in the Republican Party, not all -- it has created not jobs, not capital. It has created chaos."

O-H R-E-A-L-L-Y !! ??

Well don't fucking push this TRILLION dollar bill through to bail the GOP out you nimrod!!

Posted by bleedingheart at 09/29/2008 @ 3:29pm
Remember last week when we were told that if this did not pass by friday the economy would collapse?

Just like if we did not invade Iraq in March of 2003 he would be bombing Elkhart by June 2003, just like his associates in AQ.

vuja-dey all over again.

Let the "market" work. If the smart guys that head "The Market" fail, oh well. If they take us with them, maybe the sheep will learn that the rules put in place post 1928 were there for a reason. sometimes the medicine is hard to swallow.

Posted by crabwalk at 09/29/2008 @ 3:30pm
It's called a 'correction'. The DOW was predicted to hit around 8000 at about this time-- a year ago.

That some in the new con dic'tatorship were able to predict it coming and then plan on pilfering additional funds from our publics coffers to pad their pockets further-- was also highly predictable.

Posted by hsuBfools at 09/29/2008 @ 3:34pm
It appears to me that it is the Democrats who want this bill. It will be not Bush, but the next president who oversees this further enlargement of govt.

Real conservatives don't approve of this bailout and succeeded today in stopping it (at least temporarily).

But I will also add that there is an interesting shared interest against this bill by both the left and the right. Although it seems for a few same but mostly differing reasons.

Those who really believe in the market, believe that the market and not govt shoud resolve this. Some on the left hold the same view. But many on the left have an additional demand. Spending at least the same amount in more govt programs. In one sense, you lefties have a point. If the govt is going to just take over keeping business running, they might as well go all the way and take over household budgets at the same time.

Posted by lvliberty1 at 09/29/2008 @ 3:34pm
finally the cons got something right.

Write it down.

Posted by crabwalk at 09/29/2008 @ 3:36pm
Is it possible the dems actually want to let this happen so they can follow the money and make for easy documentation and prosecution of the pilfer-ers?

It was after all initiated by the hsuB/cHeney admin...

Posted by hsuBfools at 09/29/2008 @ 3:43pm
hsub, more likely the dems are kow-towing to their main contributors.

Once again we see why they have 10% approval, they are not liberals, or progressives. they are doing the bidding of the conservative George W. Bush.

Posted by crabwalk at 09/29/2008 @ 3:49pm
"A Pelosi spokesperson is having none of it: 'You don't vote on a speech, you vote on a bill.'"

If that's true, what was the speech meant to accomplish?

Posted by rrichard63 at 09/29/2008 @ 4:00pm
The DOW looks like it wants to go back up to only -500 points.

So anyone remember how fast the stock market dropped on Black Monday or Tuesday-- lost 13 to 24%.

So is 5-6% supposed to be scary?

Posted by hsuBfools at 09/29/2008 @ 4:04pm
Posted by lvliberty1 at 09/29/2008 @ 3:34pm

What you are NOT acknowledging LVL, is that an unbridled "free market" is what led to this mess.

In 2004, Goldman Sachs, Morgan Stanley, Bear Sterns, Merrill Lynch, and Lehman Brothers came to Washington to get an exemption from reserve requirements so they could engage in riskier investments.

It was Bush's SEC that granted this exemption OVER DEMOCRATS OPPOSITION!

http://tinyurl.com/3tgwyx

Posted by Metteyya at 09/29/2008 @ 4:10pm
It appears to me that it is the Democrats who want this bill.----Posted by lvliberty1 at 09/29/2008 @ 3:34pm

Okay,LL, you won't admit Bush is a socialist....are you atleast admitting he's a "Democrat"??!?!?!

LOL

"President Bush urged lawmakers early Monday to support the bipartisan bailout plan, which is known as the Emergency Economic Stabilization Act. Bush cited the need to pass the legislation to free the flow of credit by allowing financial institutions to offload their nonperforming mortgage assets."

www.bizjournals.com

Posted by Maskdelta at 09/29/2008 @ 4:16pm
"If thats true why are there so many followers of Obamanation and his campaign? All he has ever accomplished is 130 votes of "present" and speeches full of flowery rhetoric which belay his actual 143 days of actual legislative presence!"

Well, shit...like McCain finally showed up for the first time since April, but when he has actually voted, he voted for this war and he voted for all the stuff that has caused this financial mess. I'll take voting "present" any day.

As is, I am so glad this failed, and I am glad Warren Buffett is pissy. Bummer for Goldman Sachs, and thus, bummer for Warren.

Posted by onthehelm at 09/29/2008 @ 4:16pm
-770.59

Posted by Freewheelin_Franklin at 09/29/2008 @ 4:17pm
I don't get it..why are the Democrats trying to revive a failed Herbert Hoover strategy...? Herbert Hoover did the same thing only it was called a "bank rescue", it didn't work!...a year or so later the banks failed any way...(we were just further in debt, with a bigger deficit)....Why aren't the Democrats looking at what Roosevelt did to pull us out of the depression...bail out Main Street, buy the mortgages from the banks..(made payable directly to the government) use that money to put people back to work, (WPA) so they can feed their families and pay their mortgages, while repairing our crumbling infrastructure... (The GOP always hated the "New Deal", spent all this time reversing the regulations, while allowing Wall Street to rob us blind (for politicians campaign contributions)..(just like the old "Robber Barons")..and here we are again..ready to make the same Hoover mistake...doesn't any one ever learn, any thing...?)

Posted by Chabuka at 09/29/2008 @ 4:22pm
Uuhmmm sounds like fun, a Roosevelt WPA program that sounds just like a veto/filibuster new con repubs would really rally against.

Posted by hsuBfools at 09/29/2008 @ 4:29pm
Yeah lets all inundate DC dems with phone calls and email for a Roosevelt WPA program instead.

Lets see if the DOW moves up?

Posted by hsuBfools at 09/29/2008 @ 4:32pm
Oops-- too late.

Posted by hsuBfools at 09/29/2008 @ 4:32pm
I would like the THANK the 40% of the Democrats that voted NO and the 33% of Republicans that voted NO as well..

Hopefully the "NO" percentages will be even higher next time around!!

Posted by bleedingheart at 09/29/2008 @ 4:39pm
It's passed and Bush will sign it.

Cases don't matter anymore, Mr Hayes.

Posted by Maskdelta at 09/28/2008 @ 8:56pm

heheh. nothing personal.

Posted by frosty zoom at 09/29/2008 @ 3:14pm

No, no....very happy to be wrong about this one!

Eric and CKA can now enjoy themselves even more!

Posted by Maskdelta at 09/29/2008 @ 3:24pm

I must admit that I did let loose with a good cackle at Mask's expense on reading Frosty's post.

Posted by cka2nd at 09/29/2008 @ 5:01pm
Hey anything's possible-- maybe it's not tooooo late for impeachment...

Posted by hsuBfools at 09/29/2008 @ 5:33pm
NYT: Special Prosecutor Named in Attorney Firings Case

Posted by hsuBfools at 09/29/2008 @ 5:44pm
"Marcy Kaptur says it was an amazing day in the United States Congress. "The American people were heard and fear was put on the shelf."

Kudos to those Representatives who voted NO. Do I see a faint light in the horizon? Great day for democracy. For once. Representatives actually listening to their constituents....can't believe it.

If anyone missed Marcy Kaptur's speech on the bailout do check it out on YouTube. How about these young Republican in the House....actually sounding like Republicans and making sense for change after 8 years of nonsense. It may be self-serving, but I will take it when it coincides with the will of the people.

Posted by OneVote at 09/29/2008 @ 6:26pm
Posted by Maskdelta at 09/29/2008 @ 3:24pm

I must admit that I did let loose with a good cackle at Mask's expense on reading Frosty's post.

Posted by cka2nd at 09/29/2008 @ 5:01pm | ignore this person | warn this person

I do think that the bill's failure took most of us by (pleasant) surprise. You would have had to pay me a big spread to get me to put money on the bill's failure. Yipppeeee for now!

Posted by OneVote at 09/29/2008 @ 6:33pm
finally the cons got something right.

Write it down.

Posted by crabwalk at 09/29/2008 @ 3:36pm

I second that emotion.

Posted by k330k at 09/29/2008 @ 7:12pm
Posted by k330k at 09/29/2008 @ 7:12pm

It's NOT ENOUGH for the Cons to simply be against the bailout, they need to REJECT their "free-market can solve all problems" philosophy that got us into this mess!

Posted by Metteyya at 09/29/2008 @ 7:36pm
Posted by cka2nd at 09/29/2008 @ 5:01pm

I admit mistakes, CKA.

I also know that the "workers' revolution" isn't coming unless EVERY bit of the shit hits the fan as far as the economy goes.

I don't expect to be proven wrong on that one.

You disagree?

Posted by Maskdelta at 09/29/2008 @ 7:50pm
Well I guess that congress finally got something right... now what they need to do is do a real bill one that would help everybody not just lenders/banks & wall street.(..but also main street.....)... they could start by having all the lien holders to reduce the amounts by 25% & lower instrest rates to 4.5%... for all the loans writen in the last 4 years ; 1st. 2nd , 3rd & equity lines.. this would be cheaper than the cost of foreclosure plus resale , which is costing them 50to 60 % of the value of the notes at least plus the lost income & value of their stocks /companies value.. If the holders of this debt want to sell it they should have to sell at a discount /fire sale like we have seen WAMU / INDYMAC / BEARSTERNS / etc.... discount at least 30% from face value .. Nationalize freddi & fanni ; use the income from them to pay off the debt.. They started out as federal enities & we had to back them up./bail them out.. Reinstate the rules / regulations & over site that was in place before BUSH 1 became press & bush 2 finished getting rid of.. There is a old rule called KISS ; keep it simple/stupid.. No free ride for lenders or wall street They caused this mess with the way the packaged all these so called enities/loans which shold have been against the law...

sincerly chris

Posted by flatrater at 09/29/2008 @ 9:46pm
Pelosi is a gutless fraud. She's been disrespectful of every senior member of her delegation's attempt to gain oversight and oppose ANYTHING the Bush Administration has wanted.

Now, because so many Republicans showed up to opposed the measure, does she find a spine.

She hasn't LED on any issue. Ever.

My God, one of the biggest hawks in the Democratic delegation, Jane Harman, was shocked at how in bed with the Bush Administration Pelosi has been on the war and everything else.

Cheap political points, too little, too late.

Posted by DexterManley at 09/29/2008 @ 10:07pm
Posted by DexterManley at 09/29/2008 @ 10:07pm

That's because she's system from top to bottom. Here's something from Lew Rockwell about the actual character of the bailout failure, that it was a revolutionary act, a peoples act against the system:

"I'm fully aware that Paulson and Bernanke have some nefarious scheme in mind to reverse the thrilling defeat of their criminal bailout package, a package shot down by independent members of Congress on both sides. But reflect for a few minutes on what it means that the House did this. It was a revolutionary act in the best sense of that term.

The entire establishment was united in favor of what was surely the most horrible and outrageous bill to ever come before Congress. The Fed, the Treasury, leadership of the Democrats and Republicans, the Wall Street Journal and the New York Times, all the major think tanks, most talking heads, the wealthiest corporations, important academics – in short, the whole of the power elite – were united in favor of this awful thing that proposed the following: Americans were to be stripped of their earnings and their future to prop up failed enterprises."

Progressives vote Nader, conservatives vote Baldwin.

Posted by john lowell at 09/30/2008 @ 10:46am
People have lots of different reasons for not wanting this bailout.

Some, like the writers on here, don't want it simply because they don't like Wall Street.-Big Bad Wall Street. Thats not really a valid reason.

Some don't want it because its really not the American way, or because our tax dollars shouldn't be used to fund Wall Street's mistakes, or because if you keep standing the baby up when he falls he'll never learn to walk.

Or because the McClellan Congress won't REALLY fix it with responsible rules and corrections-and it'll happen again.

Those are all valid reasons.

I kind of wonder how bad it really would get if we NEVER did a bail out. Yesterday I watched a relative's stock and one of my own, constantly refreshing my computer while the worst was happening. They jumped up and down as fast as the guy on the radio changed his reports, but in the end, they both only fluctuated about 2 points. Hardly a disaster. And a 750 point drop, when spread out over hundreds of different stocks is not nearly as bad as Bush wants everyone to believe.

Maybe we SHOULD let these failures fail. It might make them more cautious in future. And we'll survive. We always do.

Chip

Posted by CHIP THORNTON at 09/30/2008 @ 11:34am
Posted by john lowell at 09/30/2008 @ 10:46am

Again, even if Obama loses, one bright ray of sunshine here will be the complete absence of Looney Lowell after November 4th.

Posted by Maskdelta at 09/30/2008 @ 1:56pm