September 29th, 2008
02:11 PM ET
6 years ago

House kills $700 billion bailout plan

The House of Representatives rejected the bailout plan Monday. Watch live coverage on CNN.com/live.
The House of Representatives rejected the bailout plan Monday. Watch live coverage on CNN.com/live.

WASHINGTON (CNN) - The House of Representatives Monday rejected a $700 billion plan to bail out the financial system, putting a roadblock in front of the largest government intervention in the market since the Great Depression.

Watch: GOP blames Pelosi

Republicans and Democrats blamed each other for the failure of the bill, which President Bush had urged Congress to approve.

Watch: GOP 'punished the country'

It was intended to reassure financial markets by giving the government the power to buy "illiquid assets" such as bad mortgages.

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Filed under: Congress
soundoff (405 Responses)
  1. Aygola

    How much you bet we're going to see the big McCain come and save the day in DC. Maybe they will call for the Biden-Palin debate to be postponned in December.
    Stop playing politics for God sake

    September 29, 2008 02:45 pm at 2:45 pm |
  2. Steve/ Houston,TX

    I feel like America has been punked! Where is Ashton Kutcher?

    September 29, 2008 02:45 pm at 2:45 pm |
  3. Nick - Arlington, VA

    Nobody wants to have a bailout but the ramifications of doing NOTHING will come back to hurt us way worse.....this is ridiculous...the republicans failed to get the number of votes that they promised and now we have nothing as the DOW plunged 700 points at one point....Congress is holding politics above our economy....insane.

    September 29, 2008 02:45 pm at 2:45 pm |
  4. Chris Moses

    Bailout a company??? This is not what needs to be done!! Take the 700 billion and give it to every tax payer over 18 years old. Thats over $200,000 for each person. If that is done then alot of people can pay their homes, cars etc off. And anyone who does not own a home could buy one if they want. Start at the bottom with this then the top will profit!!!

    September 29, 2008 02:45 pm at 2:45 pm |
  5. Pat Riot

    A victory for the free market. This would not be the solution we should seek.

    September 29, 2008 02:45 pm at 2:45 pm |
  6. RickyL

    Start at the bottom and trickle up!!!! That's the only bill I would trust.

    September 29, 2008 02:46 pm at 2:46 pm |
  7. Realize these real lies.

    WE SHOULD CLEAN EVERY ONES CREDIT, SUCK IT UP AND START OVER.WE CAN NOT SAVE EVERY "BIG BUSINESS" BUT MORE SHOULD DONE TO GET THE AMERICAN PEOPLE (MAIN STREET) INTO THIS BECAUSE WE ARE THE ONES THAT WILL FEEL THIS RESULTS NO MATTER WHAT THE CAUSE. THE BIG WIGS (IT'S TIME TO DOWN STEP DOWN, YOU GUYS HAVE DROVE THIS COUNTRY LONG ENOUGH NOW AND LOOK AT THE MESS WHEN GREED IS AND HAVE ALWAYS HAVE BEEN THE KEY TO THIS...WE HAVE GIVING UP SO MUCH AT SO MANY TIMES. I JUST THINK IT YOUR TURN. THIS IS WHAT YOU CALL "TOUGH LOVE".........WELCOME TO OUR WORLD!!!

    September 29, 2008 02:46 pm at 2:46 pm |
  8. Dem loving Republican Congress folks

    I am very proud of my Republican Congressman and I say that as a Democrat!

    September 29, 2008 02:46 pm at 2:46 pm |
  9. anton

    thanks goodness it failed. people forget we don't have those 700 billion, that would have been an astronomic IOU to our children. you don't spen what you don't have. This crisis is here because we over borrowed in the first place, as individuals and as a nation. borrowing even more would just make things even worse. so please stop wining , thighten up your belt, stop living like a rockstar, and lets go through this already

    September 29, 2008 02:46 pm at 2:46 pm |
  10. MD, TX

    Please publish the names of the 94 democrats who voted against this bill. They need to be congratulated for having the courage to vote against something that was truely against the best interests of the United States (even though their reasoning was probably faulty).

    September 29, 2008 02:46 pm at 2:46 pm |
  11. Reality check

    Pelosi is a failure to the American people and especially the democratic party. She sealed her fate when she interferred with the democratic caucuses and primaries with the super delegates (and the fact she has done absolutely nothing since becoming house speaker.)

    Just another notch on the tombstone that looms over her career. Obama would not (not couldnt - wouldnt) unite the democratic party either. They are two sides of the same coin.

    I work in Home Equity for a National Bank and our company is in good standing. Let these corporations fail that preyed on those that couldn't afford their loans. Why should I have to bail them?

    September 29, 2008 02:46 pm at 2:46 pm |
  12. Tiff of lithia springs

    I hope the republicans don't think this is going to change the polls or get them more seats in Congress. I'm not impressed by them attacking Pelosi's leadership. They need to be lookin' at McPain and Failin'

    September 29, 2008 02:47 pm at 2:47 pm |
  13. linda n carolina

    I say let the Republicans redo the bill themselves since they have all the answers.......the blame game is on. I say we vote them all out in Nov. We'll see now if this really was a crisis or not.

    September 29, 2008 02:47 pm at 2:47 pm |
  14. Krystyn

    Don't people understand that companies, NOT the greedy ones, are not able to make payroll right now and can't borrow because of the liquidity issue??? And that means they'll have to let workers go because they can't pay them?

    People like you and me. People who aren't to blame for subprime mortgages or who aren't mired in credit card debt...people are paying their bills and staying above water right now.

    So because of our politicians using this to play games (thats YOU House Republicans) we could ALL suffer?

    Thats ok with you? If so, what kind of American are you?

    This isn't the time for ideology. Its time for REALITY and action.

    September 29, 2008 02:47 pm at 2:47 pm |
  15. Keyon Thomas

    This is my very issue with republicans. They fail to lead then shift the blame. don't get me wrong I don't like either party as a whole but come on. Dems delivered a huge chunk of the votes and the republicans couldn't come tot he table. Then they come on camera on every major news outlet and blame Nancy Pelosi for the failure to perform. Republicans stop blaming and start performing. Your party doesn't like the plan so your party needs to fix it. In the end we are all Americans so lets look out for Americans and come together as Americans and bring forth a solution that works.

    September 29, 2008 02:47 pm at 2:47 pm |
  16. Mark Ferbet

    This is proof-positive that Congress needs to see a big change come November. Both sides are guilty of pandering, and are encapable of any sort of compromise.

    I think they need to stay in session until a compromise is reached.

    September 29, 2008 02:47 pm at 2:47 pm |
  17. charlie

    I'm proud of those who voted no on this bill. Those politicans showed courage to take the political fall out for the short term loss. Yes, the Dow fell 600 points!! Yikes. However, this bail out would make things worse.

    You can't put a fire out with more fire. Recall Bush said we got into this mess with too much credit, now they want to put in more credit. This bill would've saved investments short term but devalue the dollar by a lot. Many POOR AND FIXED INCOME PEOPLE could not keep up with the inflation. Sure your investments might've not fallen as much given a bail out but how would most people afford $6 gas and higher food prices. What would happen in long term would be people would buy less stuff because of inflation and everyone would suffer. Supply economics don't work they didn't work during the Great Depression and they won't work now.

    September 29, 2008 02:47 pm at 2:47 pm |
  18. Georgia Gal

    Interesting how Obama is around to make a statement, but McCain is nowhere to be found.

    September 29, 2008 02:47 pm at 2:47 pm |
  19. White EX REPUBLICAN Texas Woman FOR OBAMA

    James- Seriously. Where have you been for the last eight years? It's the Republican administration that got us in to this mess. Why do you think McCain calls/called himself the "great deregulator". If you think this crisis just popped up in the last 19 months, you're crazy. This is the end result of 8 years of laissez-faire Bush deregulated banking industry economics.
    Oh, and if you've got a 401K or other retirement account, KISS IT GOOD BY!

    September 29, 2008 02:47 pm at 2:47 pm |
  20. JP

    To JD in NC......THE HOUSE OF REPRESENTATIVES ARE ALL UP FOR REELECTION IN NOVEMBER so do us a favor and put your conspiracy theories to rest.

    September 29, 2008 02:47 pm at 2:47 pm |
  21. Truth Hurts

    Honestly, I think all these idiots in Washington are the same.

    I was a Democrat, but I'm done with dems. I loved how Congress was investigating steriods in baseball for the last two years instead of doing anything about gas prices.

    Democrats have let our economy go to crap just as much as the Republicans. You better wake up people... They would love to throw our economy under the bus just to get a president elected.

    All this could have been avoided, but I guess Hillary was just promoted a gimmick when she was arguing to freeze interest rates 2 years ago on subprime loans and give us a gas tax holiday.

    Honestly, neither Obama or McCain get it.

    But, I will vote McCain because at least he has a record of bucking the system. Obama is just a "yes" man with empty rhetoric.

    September 29, 2008 02:47 pm at 2:47 pm |
  22. dave in mn

    Do the Republicans really think that this will get them re-elected? For the first time ever, I'm voting all democrat.

    September 29, 2008 02:47 pm at 2:47 pm |
  23. Ken in Dallas

    So much for House Republican "leadership." They need to send Boner and Blunt back to the minors.

    It's now easy to see why McCain didn't want the credit for putting this deal together; it wasn't.

    September 29, 2008 02:48 pm at 2:48 pm |
  24. Look it up

    People really need to start looking up the facts.....Why was ACORN even in the bill (which republicans had taken out). Look up Obama and ACORN! Why did the politicians have to mudd it up with their junk to kill it. Nancy Pelosi is the reason why this was killed, because she had to open her mouth before the vote. Also, look at the numbers, there were a lot of democrats who voted no. People, please start looking up the facts, do not be ignorant google it!

    September 29, 2008 02:48 pm at 2:48 pm |
  25. Nik

    Now that John McCain stated he's for the bailout, it will be interesting to see how he and his campaign spin this to say he was against it. I don't think the average American understands the effects of not stabilizing our financial market. I saw Cramer and Mitt Romney this morning and they both agreed that its the duty of the government to stabilize the economy and preserve the currency. When Americans hear their tax dollars are being used to "bailout" the market, the negative connotation supersedes the need for action. When you read comments like the one noted above by "James", you almost feel sorry for those Americans that want to point the blame rather than shared responsibility for both parties is called for. Division seems to be the American way.

    September 29, 2008 02:48 pm at 2:48 pm |
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