House defeats bailout bill; stocks dive

Politico.com has this summary.

Public sentiment is very strong against a bailout. Word is there will be another vote. Armtwisting must be intense.

  • Drowssap

    This is the best news I’ve ever heard! I hope it fails on the revote.

    This morning on Bloomberg they interviewed a credit analyst. The reporter asked her why the credit markets were still contracting despite the fact that the House was going to pass the bailout later in the afternoon. She answered that Wall Street had already factored in the bailout but the fundamentals of the economy were weakening so credit would remain tight.

    NO KIDDING! This bailout does nothing to shore up home prices or help failing businesses. As long as we are in an economic slowdown credit is going to remain very tight.

    This bailout is legal, white collar crime.

  • Lynn David

    We’re headed into a seriously deep recession. People will lose jobs, homes, livelihoods. Things popping into my mind, like people watching less TV, cable and satellite services tanking, cable channels failing. HDTV a disaster with people not even caring to upgrade. The electronics industry failing… wait, that’s in Taiwan/Korea/Japan/China…. China, really taking a hit from this.

    The last depression that set off worldwide was one trigger for German aggression (or the rise of the Nazis). Could this episode be a trigger for another country whose new dependance on on foreign markets is now slashed and whose large military is just itching to get into a fray. Sarah Palin on the front lines of a Chinese invasion through Siberia? Or do we get ICBMs from the Takla-Makan?

    Maybe it should have been passed…. that national security issue so high on both candidates’ minds.

    I’m just rambling….

  • minty

    Bruce Bartlett’s take. Let’s hope he’s wrong…

    Bottom line: We’re closer to the precipice than Congress or most of the public understands. Our entire economic system really is at stake – and those treating the bailout plan as just another government spending program are seriously wrong.

    Failure of this plan risks another Great Depression. Really.

    This is not to say that the administration’s plan is the best we could do. But now is not the time to come up with something better. There is no time. The program can be revised later, when the emergency is past. For now, everyone should hold their noses and vote “yes” on the bailout.

    http://www.nypost.com/seven/09272008/postopinion/opedcolumnists/why_the_bailout__130927.htm?page=0

  • Drowssap

    Lynn David

    We’re headed into a seriously deep recession.

    This one is going to be very, very bad. I don’t know if it will be like the Great Depression but it’s not going to be pretty. I am making contingency plans in case my business shrinks by up to 2/3rds over the next year.

    I went out to eat last Friday night at Macaroni Grill. I was there at 5:30pm and the restaraunt was only 1/3rd full! I think Paulson’s “give me $700 billion in a week or else” speech spooked people big time.

    BTW, Washington D.C. can’t appoint a Dog Catcher in a week. Paulson is crazy.

  • Drowssap

    Minty

    This is not to say that the administration’s plan is the best we could do. But now is not the time to come up with something better.

    Nobody has explained how this plan is going to free up consumer/commercial credit. Last month prices for homes dropped 5% in California. That’s a freefall. Why would banks want to throw money into that pit with or without a bailout?

    A year from now prices will bottom out. When they do credit will free up, banks will lend and the economy will grow again. This bailout doesn’t improve anything except the balance sheets of crooks on Wall Street.

  • mary

    This is very scarey. I, too, have contigency plans – sort of a war plan and fall back positions.


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