Monday, Sep 29, 2008
Surprised?
Bloomberg: U.S. House Rejects $700 Billion Financial-Rescue Plan
Sept. 29 (Bloomberg) -- The U.S. House rejected a $700 billion financial-rescue plan intended to restore confidence in the nation's banking system, dealing a blow to government efforts to contain a lending crisis.
The House rejected by a vote of 228 to 205 the measure to authorize the biggest government intervention in the markets since the Great Depression.
The Dow Jones Industrial Average fell 554 points, or almost 5 percent to 10,589, at 2:32 p.m. New York time.
``The American people rejected this bailout and now Congress did likewise,'' said Republican Representative Mike Pence of Indiana.
Posted by flintster1994 @ 07:41 PM (1453 views) Add Comment
24 Comments
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1. flintster1994 said...
Could the original plan just have been the aperitif to wet our appetites? Makes you wonder whats coming now!
2. Fingerbob69 said...
hmmmm... just what is Plan B?
3. planning4acrash said...
They say that a compromise was passed. Anybody know anything about it? They buried that at the bottom of the article. No details of what it contains or analysis of implications. So, this may be a false victory.
4. Mike said...
Let's face it. The house would have been crazy to pass the rescue plan. The damage is already done in the US economy. Now the only way to get the incompetent cronies out is to bankrupt them out of existence. Mr Bush will be seen as the president who brought down the American finance system and will leave as one of the most unpopular presidents ever. Expect huge falls on the FTSE this week but then an apparent detachment from the US share prices when investors pile out into Europe/East. After that comes what some believe will be a South/North America single currency which they hope will be able to compete with Europe.
5. flintster1994 said...
"False victoty." Without a shadow of a doubt! Their ace isn't far away! Damn interesting times!
6. planning4acrash said...
There's a long commentary, Ron Paul blogs inbetween voting and speaking. Very informative, at: http://campaignforliberty.com/
Blog includes his speach.
7. little professor said...
So many people were saying this was a done deal, no matter how unpalatable it was to the politicians. This outcome was unthinkable at the weekend.
Major pwnage ahead. Protect yourselves. Many more bank failures to come.
8. planning4acrash said...
Looks like Bloomberg are just making assumptions about the compromise, here is what Dr Paul had to say about it:
I just spoke with a senior legislative aid on the Hill and was told that the bailout is definitely dead for today and Tuesday in light of the the Jewish Holiday.
Pro-bailout negotiators will begin reaching out to Reps who voted Nay to tweak the deal and change their minds. A vote to reconsider is possible for Wednesday, but more likely for Thursday or Friday. It is a major blow toboth Nancy Pelosi and the Administration that the Taxpayers prevailed in round one. Expect arm-twisting of epic proprtions in round two.
C4L will provide a Roll Call vote as soon as it becomes available so we can all see who we need to encourage to remain strong and continue to stand against this boondoggle.
9. it_is_going_with_a_bang said...
All you hear is threats and more threats by all those that want the money.
Your life will be terrible if mine is - is the basic message from all those in the money! ( or were in the money ... )
How nice.
10. harold said...
Surprised?
Not at all. Congress is under extreme pressure from the US public to be tough on the bailout. The bailout will/has happened by other means (http://bloomberg.com/apps/news?pid=20601087&sid=a9MTZEgukPLY&refer=home), thereby keeping Congress looking tough and as if it votes in the public's interest (nothing could be further from the truth). Effectively, this is a false flag vote.
11. flintster1994 said...
Bank failures are just the tip of the iceberg. Do you not feel the winds of change? Scary and exciting at the same time. It's a time for strong family units now! I am so thankful for my knowledge of British flora and fauna! Bonne nuit fais de beaux reves!
12. peter_2008 said...
So, what now? I guess, an "too little too later" alternative will be evetually passed.
HPC 70%!!
13. techieman said...
I am amazed at this because althoughthe whole thing stinks i really thought they had no choice. Earlier i was looking for a sensible place to go long either late tonight or from the off tomorrow. My sensible levels - unsurprisingly - have been blown out of the water. I think they will do something but i have no idea at the moment what! I was looking for a turnaround tuesday i.e. a lower open tomorrow and then a higher move, perhaps they will ban ALL short sales, although really this move does make a mockery of the people that blamed the short sellers (i know off on my high horse again!). We are close to the end of Q3 too, seasonally October gets worse, i suppose it takes a brave man to bet against the dominant trend in these conditions..... am i that man? Well i think there will be a very volatile session tomorrow with wild swings. Hold on to your hats!!
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15. layers said...
Or are they sowing the seeds for suspension of Congress with BushCo. ruling as the default Dictator? Let the markets collapse and remove the November elections? Are we now at the eleventh hour with all Hell about to break loose?
If we hypothetically take the 'Conspiratorial' view that this is all part of a grand design with the outcome being the destruction of the USA and a 'one World govt', then does today's decision take a step closer to that end, or a step further away? And if that working hypothesis has any legs: in terms of the ruling Republicans wanting to maintain the 'status quo': does this vote support or refute it?
Either way the tipping point is extremely close - just very glad I don't live in the US.
I still think there are many more twists and turns to come just yet, but the pressure is now near bursting.
16. doomwatch said...
I would imagine Nationwode will be stress testing their worst case scenarios (50-60%) down over the coming days.
17. layers said...
@doomwatch - I'd imagine there are some late nights in Swindon right now with any manager who has authority ;-)
18. planning4acrash said...
Layers, Sterling, and, to mention it, AUS Dollar, have fallen much farther than the US Dollar. Our housing boom was greater, our loss of manufacturing, greater.
19. nooneo said...
Don't know about you chaps but I'm starting to carry a spare pair of boxers with me at all times...
Went out for a friggin 2 hour walk today and lost more than a few bob in the time it took !!!
20. flintster1994 said...
"Went out for a friggin 2 hour walk today and lost more than a few bob in the time it took !!!"
Not with you nooneo. What do you mean?
21. layers said...
P4aC - totally agree, but the USD will collapse. AUD though has gained 70-80% against USD since 2001 - much to my chargrin. However, IMO it's still likely that the UK will join Euroland soon off the back of destruction etc. But then I always want a front row seat.
16 nooneo - I take it you're cr*ping yourself then ;-)
22. nooneo said...
flintster1994 @ 17
I am unfortunately a shareholder......I have sold most but you'd think banking shares would be reasonably safe...They're not..
Oh well...At least I still love the wife!!!
23. alan said...
No politician with an eye to the future wants to be associated with a plan to "bail out banks".
Politicians do not see the unfreezing of liquidity as something to vote for. It will not get votes in the forthcomimg elections, better some other way is found. A "Not Me" scenario.
24. flintster1994 said...
And i'm sure she's hot aswell nooneo! You're right, enjoy the important things! The rest can go to hell!