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. Bulldog

    WOW. Those House Republicans better hope the market doesn't crash in the next month. They will lose their jobs for sure.

    September 29, 2008 02:26 pm at 2:26 pm |
  2. david

    Fire everyone who voted against this bill!

    The ones who voted against it are either worried about their reelection, or a simple minded c onservative who still believe we should put our social security on the stock exchange.

    Why I support this bill?

    Its the only way to fix an ven bigger problem. Do you want no loan for a home, no loan for your school, no loan for a car? if you dont need a loan for a new business, vote against it and watch America fall!

    VOTE ALL REPUBLICANS OUT OF OFFICE! THEY DESTROYED IT BY THEIR SIMPLE MINDED THINKING! THE SAME THINKING THAT MADE OUR MARKET CRASH IN 1929!!!

    September 29, 2008 02:26 pm at 2:26 pm |
  3. Andy J, NY

    Lets talk about lowering some tax rates to spur business growth.

    Hand outs aren't going to do anything but devalue our currency.

    We can figure something out to help HONEST people getting screwed by the crisis, but we don't need these dramatic bailouts.. we don't need these scare tactics of the Republicans, and the Dems are just looking for a reason to get the Federal gov't into the financial system even more. Little does anyone realize this whole crisis was not caused by greed alone, but BY BAD POLICY SET IN WASHINGTON DC.

    NO TO THE BAILOUT!!!

    NO TO SOCIALISM!!!!

    NO TO NATIONALIZING OUR PRIVATE BUSINESSES!!!!!

    September 29, 2008 02:26 pm at 2:26 pm |
  4. Dillon

    Are we ready for a second Great Depression? How can people prepare?

    If that's where this country is heading, let's hope it doesn't take another world war to get us out.

    September 29, 2008 02:26 pm at 2:26 pm |
  5. Typical White Person

    Thank goodness there are some people with the guts to say "no" to bailing out the bankers the overextended. The people who are losing their homes now are the same ones who bought homes they couldn't afford (or went for the interest only refinance loans out of greed) – so I'm not that concerned that they are going to have to go back to renting until they can save up a down payment (like the rest of us did) and get a house they can afford (like the rest of us did) with a reasonable interest rate (like the rest of us did).

    Those failing banks will be bought up by somebody and the market will losen up and things will go on. Will it be tough? Yes. But when the going gets tough the tough get going. Unless you are a liberal and then when the going gets tough you expect the tough to bail you out while you continue to whine.

    September 29, 2008 02:26 pm at 2:26 pm |
  6. Bruce

    Well is this really a surprise? I think not...the repubs wanted to make a point and try to save thier butts ,because they are ones that removed the regulation that might have been in place to avoid this. and the dems did not really want this either ,but at least treid to do something to save the system.
    I did not like this but now the alternative of finacial collapse is truly there...and if it does happen remember that you ahve the repubs to blame.
    Seems like for all his bulstering and blowing about how he works accross the aisle, that McCain let this one get by him...or was this intentional on his part...seems like the kind of recless thing he would do.
    Let us all pray that fear deon not grip this nation and the entire system collaspe, causing a worldwide depression.

    September 29, 2008 02:26 pm at 2:26 pm |
  7. Jerry, Florida

    oh boy...

    seriously, my IRA is done.

    Just done.

    September 29, 2008 02:26 pm at 2:26 pm |
  8. James

    Funny how all of a sudden we need a Bush policy to fix a liberal democrat failure.

    Ironic.

    September 29, 2008 02:26 pm at 2:26 pm |
  9. thetaxpayer

    Thank God for Conservative Repubicans!!

    September 29, 2008 02:26 pm at 2:26 pm |
  10. FireFighterRetired

    Hooray. Let the economy correct itself. The republicans have touted the free market economy devoid of control and restraint for decades. Now that its time for the correction, they are all about bailing out their fat cat high roller buddies. Let em sink I say. Times may get bad, but it is time.

    September 29, 2008 02:27 pm at 2:27 pm |
  11. Typical White Person

    OMG – no 72 inch plasma TV for Christmas!

    September 29, 2008 02:27 pm at 2:27 pm |
  12. Jenny, Rio Vista, CA

    OMG!! Now what????

    This whole thing is a disaster and we cannot afford to have McDeregulator and some religeous whacko in charge of this mess.

    Please, I am begging you to forget your biases and vote for Obama in November.

    September 29, 2008 02:27 pm at 2:27 pm |
  13. LISA

    I CANT BELIEVE THIS JUST HAPPENED.

    September 29, 2008 02:27 pm at 2:27 pm |
  14. Registered & Likely Voter

    Good to see that local constituents can put the fear of God into Washington.

    September 29, 2008 02:27 pm at 2:27 pm |
  15. gaetan, AZ

    GOOD JOB. We can not bailout Wall Street when ordinary Americans suffers

    September 29, 2008 02:27 pm at 2:27 pm |
  16. Not surprised

    Republicans have their big oil companies filling their pockets – they don't want to help others. THANKS A LOT!

    September 29, 2008 02:27 pm at 2:27 pm |
  17. Kellie

    Thank goodness. Now can Congress please take a deep breath and think about some alternatives to this plan that might actually benefit a majority of Americans??

    September 29, 2008 02:27 pm at 2:27 pm |
  18. Super D

    This is exactly why Obama and Democrats must be defeated.

    This all stems back to Carter and Clinton. Wanted to give poor people chance to buy houses without real credit worthiness. Then shoved this down the throat of the financial and banking sectors to accept these super risky loans, with threats of cutting off mergers etc.

    Meanwhile, Fannie and Freddie become a place for out of work Democrats until they go bust.

    Social Engineering is a flawed tactic and this just proves it once again. But Obama and the Dems want to bring this back to life, but in a bigger way then anyone can imagine.

    Vote Carefully and watch your wallet

    September 29, 2008 02:27 pm at 2:27 pm |
  19. Brian

    Oh dear. CNN, the rest of the news media and partisan politics may have just led us into the worst recession since the Great Depression.

    This is sincerely terrifying. Politicians got too hung up in what it looked like, a "bail out" (no thanks to the media) that they forgot to understand OUR ECONOMY IS TANKING AND WE MUST DO SOMETHING TO STOP IT.

    IF WE TANK, CHINA, RUSSIA AND INDIA WILL BECOME THE WORLD SUPERPOWERS AND WE WILL NOT BE ABLE TO RECLAIM THE THRONE.

    I think we may have just experienced the greatest political and economic catastrophe that the world will have ever seen.

    September 29, 2008 02:28 pm at 2:28 pm |
  20. Ron from Baltimore

    Now what? Watch the house of cards go down all over the globe, just like the "Paulson-Frank-Dodd" "team" had warned us?

    Don't want to wait around? Call China and see if they'll get on their next rocket ship to space. Hurry and get in line; make sure to take your dollars with you.

    September 29, 2008 02:28 pm at 2:28 pm |
  21. Ryan from New Mexico

    I really can't see how anyone could vote against this bill, yes im a conservative however this was the drastic action the government needed to do...

    I've thought alot about everything over this issue...and yes, I can say that I can take the Economic hit from my pay check in order for the market to stabilize....wow something needs to happen quick or else I'll be done...and i think most people feel the same way

    I dont like it...but this is something that Needs to happen NOW

    September 29, 2008 02:28 pm at 2:28 pm |
  22. Roofin Reality, Houston, Tx.

    Craps. Now my 401k is going to go in the tank.
    Thatnks Republicans.

    September 29, 2008 02:28 pm at 2:28 pm |
  23. WI Cheesehead

    Consider this statement: "The extraordinary rate of default on residential mortgages forced banks and life insurance companies to 'practically stop making mortgage loans. . . .' " Sounds like 2008, doesn't it? It is in fact a comment from Bernanke, current Fed Reserve chairman. But he wrote those words in 1983, he was talking about the Great Depression. At the most basic level, the cause of the current crisis is simple: Economists, business leaders and policymakers have all been ignoring the lessons learned from the Great Depression of 1920s. The collapse of the "un-real" estate market of recent years was as predictable as the collapse of the Great Bull Market of the late 1920s. Even though some politicians insist otherwise, the fundamentals of our economy are not strong, just as they weren't in 1929. And the principal reason is that, just as they were in the period leading up to the Great Depression, economic fundamentalists have been in charge. So let the finger pointing begin.

    September 29, 2008 02:28 pm at 2:28 pm |
  24. K

    As a liberal, I applaud my congressman for voting against this gift to Wall Street. American taxpayers shouldn't have to pay for the greed of Wall Street.

    September 29, 2008 02:29 pm at 2:29 pm |
  25. FL voter

    "The sky is falling, the sky is falling!"

    We need an honest leader in this country. We need Barrack Obama. Now.

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