$700 Billion Bailout Fails. Finger Pointing Begins

[ccheese]

WASHINGTON (CNN) -- Democrats and Republicans on Capitol Hill immediately blamed each other for the failure of a $700 billion bailout package in the House on Monday.

Republican leaders speak to reporters on Monday after the bailout bill failed to pass.

House Minority Leader John Boehner, R-Ohio, said there would be no revote on the bill on Monday because members had left the Capitol.

It was unclear in what form the congressional leadership would bring the bill back to the House floor.

The package, which was backed by both the Democratic and Republican congressional leadership as well as President Bush, failed in the House by a vote of 228-205.

A majority of Democrats voted for the bill. A majority of Republicans voted against it.

After the vote, a White House spokesman said President Bush was "very disappointed" that the House failed to pass the bailout.

White House spokesman Tony Fratto said Bush planned to meet with his advisors and will be calling congressional leaders Monday afternoon.

When the gavel came down, the members on the floor were nearly silent, CNN congressional producer Deirdre Walsh reported. Democratic members immediately met in Speaker Nancy Pelosi's office after the vote, while Republican members went into the office of Boehner, the top Republican in the House.

The stock market immediately dipped hundreds of points after it became apparent that the bill would fail.

This from CNN

Charles

[pbfoot]

Im curious about how many just voted to save their own ass in the Election rather then doing what I IMHO think is the correct vote for the loan , that why these elected guys get paid the big dollars to make tough decisions even when it goes against popular opinion

[lesofprimus]

The DOW, and I just heard this on the radio on the way home from work. has officially dropped more points in one day than any other in the history of the Stock Market....

To the average tax payers like myself, along with this failed bailout, I dont really know what this means.... Anyone with some savvy make some sense of this bullsh!t???

[Bucksnort101]

It means my 401K is going to he!! in a handbasket. Government started the Mortgage mess, gready business men exploited it, and now we the tax payers are expected to bail them out. Time to clean house IMHO!!!

[Njaco]

Hopefully the dopes that got us in this mess will lose their jobs, their stocks and their severance pay - and this includes the dopes on the Beltway.

Thank you Bill Clinton for pushing stupid laws to force bad loans through the economy.

Thank you Barney Frank, Mr. Schumer and all the others on the congressional panel in 2004 that stated their was nothing wrong with Freddie and Fannie. Quote from Mr. Frank; "They're risk-less loans". yup!

Thank you Frank Rains ( sound familiar? Olabama's current finace advisor), Mrs. Gorlock (another familiar name, the "wall" that contributed to 9/11) and others who stole millions from the same Freddie and Fannie.

Thank you Bill Clinton for finally admitting last week that the democrats failed in supporting the republicans in putting safeguards and accountability back in 2004.

Thanks to the great party that caused this mess and then has Nancy Pelosi stating that the Republicans are "Unpatriotic"! What balls!!!!

[syscom3]

It looks like there were enough votes to pass this bailout untill Nancy had to open her mouth and piss off the republicans she needed.

Great leadership, unless youre cynical enough like me to think she actually did it on purpose.

[Bucksnort101]

I don't think Ms. Pelosi is the brightess peg in the Lightbright myself.

[renrich]

Njaco and Sys, you pinned the tail on the donkey, where it belongs. pelosi, what a bitch she is, could not resist playing politics at the last so blamed the crisis on the GOP and that may have cost enough votes to defeat the bill. She can't even control the votes in her party. Whatever happened to the truth being told? Then barney franks has the effrontery to blame the GOP for the defeat of the bill.

[Bucksnort101]

Why is it you never hear how much money Fannie and Freddie contributed to the Obama, Clinton, and Franks campaigns?
Whole thing is turning into an election year load of BS if you ask me.

[pbfoot]

Who was behind deregulation of the banks was it not in the 80's under Reagan

[Matt308]

Originally Posted by lesofprimus

The DOW, and I just heard this on the radio on the way home from work. has officially dropped more points in one day than any other in the history of the Stock Market....

The question that must be answered is this mess begin to manifest itself during the Clinton years when it was mandated by Congress that poorly qualified loan recipients must not be discouraged from seeking home ownership. It's a right to own a home you know. I think its in the Bill of Rights Amendment OU812.

So in the past it was required that a mortgage borrower demonstrate that all his/her outstanding payments must not exceed 25-30% of gross income. The Clinton Adminstration under the keen eye of Barney Frank, Maxine Waters and other brilliant Democrat intellects allowed this to increase to 65% of gross income. In 2004, the gov't regulatory oversight branch informed the demo congress that these two largest loan sources were heading towards a financial meltdown. Barney Fag and Maxine Waters, along with the other Demo leaders of the time, accused the testifying regulatory oversight official of attempting to prevent lower income citizens from attaining home loans.

Now imagine that. You apply for a mortgate and they ask about all your outstanding debts and payments. They tally them up and if they don't exceed 65%!?!?!?, you are good to go with your 1% APR adjustable rate loan (that in 3 years will balloon to 10%). That 1% loan payment of $600 suddenly balloons into $3500.

Next thing you know, literally millions of people are living in houses they can ill afford. They default, foreclose and the banks are left with these houses they can't sell.

Ohhhh... now along comes Barney Fag again who is put in charge to fix this mess by the Crypt Keeper, Nancy Pelosi. They wan't $700
Billion (some say $1 TRILLION) that will be used to buy up these bad loans. This has been a problem in the making for almost 10yrs and they want three days to fix it???

If it was such a good idea, the democrats have a majority in the House and the Senate. Pass it you coward elephant effers. But they won't. You know its a pig.

Let's see what get's negotiated with a little calm. The oversight of this $700B was only a 100page document. Congress puts out a 100page document for how to properly fill out you DC Metro vouchers. Please.

[timshatz]

Sys, that is true. You can't ask people for their help and tell them it's all their fault at the same time. That woman is working proof the Peter principle doesn't work. She is 2-3 levels above where she should be.

But the problem is about 30 years old. It's simply that the whole country has been living off debt since the late 70s and now the bill has come due. In 1978, we were a creditor nation, now we are a debtor nation. We've let our industrial base wither away and that is where real wealth comes from.

The last 4 bubbles were Savings and Loans, Housing, Computers and the Internet and Housing. The last bubble, Housing, was almost entirely developed by Government regulations. 1995 Housing Act (Subprime loans), 500,000 of appreciation on your house tax free and low interest rates created a perfect storm for the excesses in the system. Now the Ponzi scheme which was the subprime loan debacle is coming due and a lot of people are gonna get bloody.

What does this mean to you? How do I avoid getting bloody? A couple of ways. First, get rid of any debt you can. Credit cards, Heloc (home equity lines of credit), ect. Second, take a good look at your finances and make sure you are living within your means. Money is going to get tight for a while. Third, look important at work. If they have to dump somebody, make sure it isn't you. Fourth, if you have over 100K in any bank, open up an account in another bank that has FDIC insurance. If it is in an institution that does not do FDIC, consider moving it.

This thing has a long way to go and the Regional banks are next. National City, in Ohio, lost 60% of it's value today. Wachovia, lost 80%, and they opened 6 business days ago at 23 a share. When these guys go, they go fast so there isn't a chance to catch it. Up to this time, the runs on the banks have been electronic, don't be suprised to see the kind of run where people are standing in line outside the front door (like in "It's a Wonderful Life").

The long and short on this thing is we are in uncharted territory. Nobody has ever dealt with a financial collapse of the magnitude that we are looking at here. It is going to be truely global. Almost a financial pandemic (a couple of banks in Europe started sliding today so it's roosting over there too). In uncertain times, the best thing you can do is keep it simple and draw in your horns. It will end, at some point. But that point is a long way away.

[Njaco]

Just heard that the UK is bailing or taking over a bank over there. The tenacles start to expand.

Pb, like Matt & Tim said it started in the 70s when Carter pushed legislation that tried to allow the poor to buy homes. Then Clinton messed with it and forced these lenders to take on questionable loans. And now the very same people who put blinders on and earmuffs in 2004 when the Repiublicans including McCain told them it was going downhill, are accusing the GOP of the failure of the bill and being unpatriotic.

And if that wasn't enough, after watching weeks of Obama bashing McCain for his lobbist/ advisors I find out that Obama's financial advisor stole $90 million from Fannie Mae!

Vote for Obama as long as you can get used to this crap.

[pbfoot]

Up here the banks are all solid so they say but its explained that they are regulated we never had sub prime loans here and to buy a house they want 10% down except if your a first time buyer then 5% will do. Byt this ordeal will hit my town like a riadal wave already business is down a whopping 50% from last year. That is a big drop as I live in a tourist area so close to the US

[Bluehawk]

I'm a happy guy. I know it won't last long. The weasels and henny pennies will find a way to be victorious accomplices in blackmail while appearing to care about the nation, its people and the world.

But, for the moment... I am almost ready to rejoice. In fact, I might a little bit... for practise.

If there is a miracle, then it will be that financial speculators, public, private, corporate and governmental - WILL at long last be forced to accept the pain that came from the gain they did nothing but sit at a computer to earn. It will be a BIG pain, and it will hurt, a lot... everybody.

They are liars and deceivers, and deserve every problem and financial or other loss they experience - ten fold.

We'll survive just fine. And, next time some ******* in a suit offers you a 40lK or some other manifestly stupid bag of nickels don't let them have your money... piss on their shoes. Save your money, pay with cash except for the REALLY big stuff. Cut up your credit cards, do without and by so doing have more and better.

They TELL us, outright and with a straight face that they are going to always "pass along the cost of doing business to the consumer." Fair enough. Now, pass it back to them! We do not owe them a damn thing.