House Vetoes Wall Street Bailout

By Pamela Mortimer

Wall Street continues to be in serious trouble. The Dow plummeted by 685 points at the same time the House of Representatives vetoed the proposed bailout to the tune of $700 billion. The final vote on the bill was 205 – 228, almost dividing the House in half. Only one member, Republican Rep. Jerry Weller, did not cast a vote.

Both sides cited a number of reasons for the opposition, including the expansion of the national debt. Others claimed the bailout was excessive government intervention. The final voting record was: Democrats 141-94; Republicans 132-77.

The bill was intended to ease congested credit lines for that financial market that has been bordering on collapse. Sellers continue to get rid of stocks even as the market plunges.

President Bush continues to insist that taxpayers receive benefits from the legislation, which contains various safeguards. Lawmakers worked through the weekend to come to a reasonable compromise.

Although many of the bill’s supporters didn’t like the proposition, the fear of economic collapse outweighed other concerns.

"I'm not willing to put that bullet in the revolver and spin it. I will take the political risk," said Rep. Spencer Bachus, R-AL, the ranking member of the House Financial Services Committee.

A GOP source said that members opposed to the bill stated part of the reason for the negative vote was a partisan speech made by House Speaker Nancy Pelosi.

"Pelosi's partisan speech has caused our members to go berserk and may cost us any remaining chance to pass the bill," the source said.

Pelosi encouraged Congress to pass the bill, although the economic crisis was a result of "failed economic policies" during the Bush administration.

"When was the last time someone asked you for $700 billion?" she asked. "It is a number that is staggering, but tells us only the costs of the Bush administration's failed economic policies — policies built on budgetary recklessness, on an anything goes mentality, with no regulation, no supervision, and no discipline in the system."

Bush made a four minute speech at the White House in an attempt to reassure Americans that the bill was the right move and would be beneficial to the country.

"I'm confident that this rescue plan along with other measures taken by the Treasury Department and the Federal Reserve will begin to restore strength and stability to America's financial system and overall economy," Bush said. "And I'm confident in that in long run, America will overcome these challenges and remain the most dynamic and productive economy in the world."