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

House kills $700 billion bailout plan

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

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

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. stephanie

    hello! bankruptcy court powers. dems, give them power here!

    September 29, 2008 02:53 pm at 2:53 pm |
  2. HyperD

    Soooo where is McCain's "leadership"? McCain is a clown and Palin a bad joke... wasn't he going to Washington to get this job done? This mess was CAUSED by republicans and now they can't get us out of it... They are pathetic! Vote for REAL NEEDED CHANGE..! OBAMA-BIDEN 08!

    September 29, 2008 02:53 pm at 2:53 pm |
  3. Debbie from NH

    If people think the situation for the people is bad now, wait until they see the number of businesses that start laying people off and ultimately going out of business now that our Congress has refused to take any action to free up credit. We may see unemployment like during the Great Depression, and LOTS more people will be losing their homes. Talk about your government (in)action.

    September 29, 2008 02:53 pm at 2:53 pm |
  4. Cynthia

    Where would the vote tally be?

    September 29, 2008 02:53 pm at 2:53 pm |
  5. Chicago GOP

    Ya knew it was going down the minute Pelosi & Reid started spewing their partisian, socialist blame game crap yesterday. Should have kept you botox mouth shout Ms. Speaker. No to socialism, only the strong survive!

    September 29, 2008 02:53 pm at 2:53 pm |
  6. Tim

    The only thing that gives me a little bit of relief is that I was smart enough not to vote for Bush either time.

    The bad thing is that the rest of us, that voted with intelligence, have to suffer, too.

    September 29, 2008 02:53 pm at 2:53 pm |
  7. Joseph Regis

    Bail out main street first, not the people who carelessly made bad business decision.

    The republicans are doomed. The Dems will fix the problem created by the repubs Bush and McCain. No more McCain – Palin.

    Obama/Biden 08/12.

    September 29, 2008 02:53 pm at 2:53 pm |
  8. david

    Great depression # 2

    Look at all the idiots on here saying it was good they didnt vote for it, thinking it wont affect them. lol... They must be smoking crack because it affects every American!

    The Dow just tanked 700 points. Thats almost 7%

    Dark days ahead!!!

    September 29, 2008 02:53 pm at 2:53 pm |
  9. lori from pa

    Good ! Hold out republicans ! The dems got us into this mess, make sure the bail out is going to work. The dems wasted enough of our hard earned money. I'm sure this list should be longer, but I hope some of these criminals will go to jail. Frank Raines, Daniel Mudd, James Johnson, Barack Obama, Maxine Waters, Gregory Meeks, Lacy Clay, Artur Davis, Charles Schuner.
    Thank you Senator McCain , Elizabeth Dole, Richard Baker, Ed Royce,Christopher Shays, Don Manzullo,John Snow,and Alan Greenspan for trying years ago to regulate Fannie Mae & Freddie Mac.

    September 29, 2008 02:53 pm at 2:53 pm |
  10. Ronald

    AMERICA is bankrupt. McCain needs to grow-up - you have no idea what this WAR is all about – you surrendered to the enemy long ago!
    Bin Laden's 1996 Declaration of War, stated, "The financial and the economical situation of the country and the frightening future in the view of the enormous amount of debts and interest owed by the government; this is at the time when the wealth of the Ummah being wasted to satisfy personal desires of certain individuals!! while imposing more custom duties and taxes on the nation." He's won without firing a shot!

    September 29, 2008 02:53 pm at 2:53 pm |
  11. edweena

    Although I'm Canadian and we may feel the effect of this American mess, I sure as hell am happy to be right where I am. Times of GREAT trouble is coming to America! It ain't gonna be pretty!

    September 29, 2008 02:53 pm at 2:53 pm |
  12. R.I.F.

    The media is doing a terrible job of explaining this bill. Unfortunaltly too many people think that this is just some sort of corportate giveaway using tax money and it's far more than that. If banks can't make loans then companies (larger or small) can't borrower and then they can't borrower they close up and then people lose their jobs...period. This money is not going to some CEOs country club dues. It's going to companies to free up liquidity which is needed. People who are against this bill will soon see that $700 billion is/was a small price to pay to keep this country out of a depression.

    September 29, 2008 02:53 pm at 2:53 pm |
  13. susan

    I am not sure what the answer is with regard to the bailout, but I do know this: last week a bank I had a significant CD deposit in went belly up, mutual funds actually lost money, small business owners were unable to get short term loans to make payrolls or service equipment, the dow just dropped 600 points, foreign banks are tanking. This is the fault of deregulation, absolutely. George Bush is not to be trusted, for sure. But if this problem isn't addressed, we will all be hurting. This is not just about the wall street big wigs.

    It is time to stop playing politics and educate the American people just how this situation affects them...and where we are headed if this situation continues.

    September 29, 2008 02:53 pm at 2:53 pm |
  14. V. Sheldon

    As the ship sinks, i hear the Republicans singing"Nearer My God to Thee"
    This is appalling.If the economy goes down, i have one big fat finger and it is pointing in the direction of the Republican Party.

    September 29, 2008 02:53 pm at 2:53 pm |
  15. Vicki

    I do not believe most of the average Americans that are so proud of this vote realize that their retirements are tied to the stock market. When they get the letter that says their retirement is gone, then they will not be so proud of this vote. Also when they cannot use their credit cards, use their ATM's, or when they get the "pink slip" because their boss could not get the credit he/she needed to meet the payroll. This was not a bailout of Wall Street, but a plan that would help rescue the whole economy of the United States.

    September 29, 2008 02:54 pm at 2:54 pm |
  16. Shawn

    I'm glad this unconstitutional bill went down. Of course, this just means the next try will have more trinkets on it to attract the remaining necessary 13 votes or so. No public money for private problems! We must take our medicince, but I have faith that when Americans remember who we are, we will find our way, this is not it. THIS IS NOT IT.

    September 29, 2008 02:54 pm at 2:54 pm |
  17. Robert in Virginia

    Republicans want us to believe that their feelings were hurt and that is why they could not produce their half of the votes. BS!!!! Is the the end result McCain went to Washington to accomplish?

    September 29, 2008 02:54 pm at 2:54 pm |
  18. No Hillary = No Obama

    The Congress of the USA has now cost Americans their hard earned monies, depleting IRA's that have taken years to build up. This is immoral. Pelosi and company need to tender their resignations ASAP.

    September 29, 2008 02:54 pm at 2:54 pm |
  19. kendall

    Give the money to current homeowners to paydown thier mortages, and vie for a better interest rate to keep them in thier home. or give it to every man, woman and child, and watch the housing slump stop dead in it's track. Obviously it was to bail out top execs and not the main street tax payors

    September 29, 2008 02:55 pm at 2:55 pm |
  20. Elizabeth from York, PA

    Do you people who are shouting with glee even realize what this means? Do you have a clue?

    It means the company you work for may have to close if they have no line of credit for payrolls and improvement projects. It means no credit to buy a car which will put thousands of auto workers out of work eventually. It means your hometown bank might fail.

    I hated the fact that this had to be done but without it we are heading for disaster.

    You people just don't get it.

    September 29, 2008 02:55 pm at 2:55 pm |
  21. ralph

    I noticed that this bill had greated dem support than gop support. Even now the GOP want to play the opposition party. This is just like the immigration bill all over again. Looks like Obama will have to play the role of FDR instead of JFK

    September 29, 2008 02:55 pm at 2:55 pm |
  22. Tony

    A victory for Capitalism!!!

    I've heard nothing but vapid excuses for this bailout. The threat of recession is not a reason to inject Socialism into our economy. Let the bad banks fail and the people who bought houses they couldn't afford lose them so that our economy will return to equilibrium where it belongs. I don't want one cent of my federal tax dollars to go towards bailing these people out.

    September 29, 2008 02:55 pm at 2:55 pm |
  23. Scott

    Thank goodness some snaity came to the process.

    Nancy and Harry once again go against the will of the people. When the people reject the bailout bill 100-1 how can you ever vote for it. And then she balmes the GOP. She could not even bring home her own party. They know the people do not want to use their tax $$ to artificially prop up a stock price.

    They are both shining examples of why congress has an alltime low approval rating. Terrible leadership right now by the Dems.

    Take a breath and let the markets work it out.

    September 29, 2008 02:55 pm at 2:55 pm |
  24. ines

    People – Vote for change! This is no way to run a country.

    September 29, 2008 02:56 pm at 2:56 pm |
  25. geraldine

    Good. time to start undoing the failed policy of Bill Clinton that forced Fannie and Freddie to issue subprimes to begin with, and the failed policy that has allowed it to fester since then.

    No matter how popular it is to Socialists on this board, blaming Republicans is not a strategy. Throwing $700B at a problem without debate or thorough evaluation isn't either.

    September 29, 2008 02:56 pm at 2:56 pm |
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