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. Mike G

    House republicans voted this down fearing for their re-election campaigns. Let's see how those campaigns do when the economy completely tanks.

    The republicans created this mess. It's time to vote all the bums out!!

    P.S. Thank goodness we had McCain suspend his campaign to stop this from happening... oh... wait.

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

    BUSH, MCCAIN AND THE REPUBLICAN PARTY ARE MOSTLY TO BLAME FOR THIS CATASTROPHE.

    MARKET WAS DOWN 700 POINTS EARLIER TODAY AND NO END IN SIGHT. FOR ALL OF US AVERAGE AMERICANS, MANY OF US CAN KISS OUR JOBS GOODBYE, AS WELL AS ANY SAVINGS YOU HAD!

    September 29, 2008 02:29 pm at 2:29 pm |
  3. RDS

    Wooow...what happened Johnny Mac thought you were going to get everyone in the House on board!

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

    Just a thought. Instead of trying to bail out failing banks who gambled and lost, how about bailing out their victims? It doesn't matter where the money is injected into the economy to get it jump started. Take 700 Billion, divide it by the number of working people and send out checks. They'll pay off bad mortgages, buy needed household items, pay bills, reduce foreclosures and become productive. The banks that bought and sold people's financial lives can go under, and no one will care. Don't throw good money after bad.

    September 29, 2008 02:30 pm at 2:30 pm |
  5. Paula Eastman

    Hey Congress, Stop thinking about your re-elections, your own fine principles, and do the truly patriotic thing. Go and vote for this bail-out, poorly named, but badly needed. Republicans-it is far too late to save your party now--I guess you would rather loose the American economy, and win your own re-elections. I know you don't like being aligned with your President right now, but come on--do what the country needs. You are well aware that the average American does not understand why this bill is needed. Rise above your fear and do the right thing. Vote for this bill-re-open the vote and do it. If the Republicans let this economy get worse-America will never forget it,

    September 29, 2008 02:30 pm at 2:30 pm |
  6. NORA, FLORIDA

    And American people think that the REPIGS have their backs. LOL. What a joke. If you buy that let me cell you property in Florida call me!!!

    September 29, 2008 02:30 pm at 2:30 pm |
  7. redhead from Toronto

    So....- Maybe now someone can come up with a better idea. As to the premise that this bailout is to protect the average American, don't they know the average American has been hurting for a long time now , a lot of them don't have much to lose since it is already gone.This bailout will hep the RICH not the poor, there will be no trickle down effect, how about some trickle UP for a change. Please, please America, don't vote for a 3rd BUSH term, change is what is needed, it would seem that any change is better than none. Vote Obama 2008

    September 29, 2008 02:30 pm at 2:30 pm |
  8. New Hampshire Independent

    the house GOP overwhelmingly rejects the bill by a margin of 2 to 1...
    and the DOW plunges and continues to drop as I type. I thought this was supposed to be bipartisan? I thought McCain swooped in and saved the day by bringing both sides together? Is he still taking credit for it, because now I guess he can take credit for the market tanking... good job! What just happened?

    September 29, 2008 02:30 pm at 2:30 pm |
  9. Anonymous

    YOU CAN'T FIX A DISASTER WITH ANOTHER DISASTER, WHERE WE GO FROM HERE ONLY GOD KNOWS, BUT THAT PLAN WAS A FAILURE FROM THE BEGINNING.

    September 29, 2008 02:30 pm at 2:30 pm |
  10. JS

    Despite all the whining about this bailout... what is the alternative? You right-wing reactionaries who are reflexively against it because it supposedly constrains our "freedoms", you probably would have been against the New Deal as well. If we have no adequate bailout plan, and we slide into a depression, than I advise all of you to SHUT UP and not offer us any more brilliant advice. How much "freedom" will we have if there is a depression?

    I also didn't like the original Bush plan. How many of you who are against the actual plan being voted on today have actually processed the details of the ammended plan as opposed to the original Bush plan? I think that both the democrats and the republicans added many useful features, and the present plan is better than the original.

    September 29, 2008 02:31 pm at 2:31 pm |
  11. Praetorian, Fort Myers

    Thank you brave representatives who did what you took an oath to do..."faithfully represent the insterests of the tax payers".

    The people of America have one a great victory in Washington today. God help us suffer the consequences.
    We all need to start a regimented savings plan!!! (and don't forget to tuck a little away in the mattress).

    September 29, 2008 02:31 pm at 2:31 pm |
  12. Glenn

    For once, my tax dollars are going to be used wisely! Thank you for voting no. It's their mess, let them clean it up.

    September 29, 2008 02:31 pm at 2:31 pm |
  13. Nelson Colorado Springs Co

    WELL WELL POP POP, rejected a $700 billion plan to bail out the financial system, Republicans and Democrats blamed each other for the failure of the bill, President Bush there is no pot gold at the end of the raindow. Good job House of Representatives. Go Obama/Biden

    September 29, 2008 02:31 pm at 2:31 pm |
  14. Steve

    The ones to blame are the ones who voted against it. Idiots!

    September 29, 2008 02:31 pm at 2:31 pm |
  15. S.B. Stein E.B. NJ

    Oh, well... Back to the drawing board. It isn't a huge surprise since there were so many people against it in and out of Congress. What Paulson and Bernake need to do is something other than direct overtaking of bad mortagages. At this point, I can do little to advise Congress (either House) since I am not 100% clear as to what needs saving.

    September 29, 2008 02:31 pm at 2:31 pm |
  16. FreeNLovIt

    Would people just SHUT up!!! about the economy. We need to borrow companies money and hold them responsible. We need to use this as an opportunity for investing in private companies.

    WE will be okay. We just need to elect Obama so he can help perform long-term strategies.

    We need the donkeys to re-engineer and create new jobs. We need new job creations and we need to help people get back on their feet and we will all be okay.!! Get new job creation going......!!! think future and stop panickign about the past..

    the secret is new job... forget offshore... let innovation drive us...

    September 29, 2008 02:31 pm at 2:31 pm |
  17. Brandon

    Can we please stop listening to the people in this country, they are so dumb and always vote against their best interests. This bill sucks yes, but it is necessary or you can kiss all of your 401k's goodbye. It's not just giving money away, there is more to it but too many dumb people in this country are doing the same thing as always, worrying about themselves in the moment...."What I'm not getting money but they are, they're going down, you better not vote for this".....even though your probably going to lose money by not voting for it. People in this country are dumb.

    September 29, 2008 02:31 pm at 2:31 pm |
  18. Anonymous

    WE NEED OBAMA MORE THAN EVER!

    September 29, 2008 02:31 pm at 2:31 pm |
  19. sam

    God help us all. Obama should take office today. Let's Stone bush.

    September 29, 2008 02:31 pm at 2:31 pm |
  20. California Voter

    It's unfortunate that this legislation has been called a bailout for Wall Street because for better or worse those who has small businesses, those who are seeking credit for car loans and those who have retirement accounts are tied to this "bailout". It's not just Wall Street it's Main Street too that will benefit from this legislation!

    September 29, 2008 02:31 pm at 2:31 pm |
  21. TXBad1

    Bail out is a slap to those that Lost there Houses and to all suffering inflation, and a higher debt from the bail out would lower of the US Dollar yet More! and remember the Bush Brothers and the S and L scandal, Bush Family is great at Costing the Tax Payers billions of $$, I'm Proud Of All members of the House that Voted against it in Both Parties!

    September 29, 2008 02:32 pm at 2:32 pm |
  22. Georgia Gal

    What part of doing nothing is not an option did they not understand??? No I don't particularly like this, but it needed to be done (as was just evidenced by the crashing stock market) and anyone who doesn't understand this is just a complete and total idiot.

    September 29, 2008 02:32 pm at 2:32 pm |
  23. Gerald in Georgia

    This is not good at all!! May God be with the next president !!!

    September 29, 2008 02:32 pm at 2:32 pm |
  24. Novita

    If McCain didn't show up last Thursday....I think this things won't happened.

    September 29, 2008 02:32 pm at 2:32 pm |
  25. Watching Closely

    The government need to freeze the 401K 's and IRA's NOW!!!!! There needs to be an intervention immediately to freeze the funds within all retirement accounts as per Friday 9/26/08 posting. NOW!!!!

    September 29, 2008 02:32 pm at 2:32 pm |
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