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House Votes Down Bailout Bill

Much of the financial market expected the bailout bill to be passed, but the tides have changed.

After non-stop press coverage for almost 2 weeks, and a never ending jockeying for position in front of the camera by the talking heads in Washington, the wall street bailout bill has crashed and burned on the floor of the house of representatives.  With nearly a 2 to 1 vote against the bill by Republicans, and 94 Democrats voting against it, clearly the constituents negativity towards this has driven the House to vote down the bill.

Since most people on Main Street don’t understand the magnitude of the credit markets right now, perhaps they will get a better understanding after checking their portfolios at the end of trading today.  After expecting a bailout to be passed, the dow plunged down over 700 points after the vote went the wrong way.  Analysts are saying that without a bailout package from Washington, the Dow could drop as much as 2500 points before settling on a bottom, which will most certainly affect Main Street.  Even worse than the uncertainty in the stock market would be the affect that a freeze in credit would have on small businesses.

I think after seeing the aftermath, there will be another vote, and there will be some sort of bailout proposal passed.  The question remains, how long will that take?  And, have many casualties will be left on the battlefield before then?


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