Bailout Fails House on the first go
The $700 billion "bailout" has failed to pass the House of Representatives. This from the New York Times:
The vote against the measure was 228 to 205. Supporters vowed to try to bring the rescue package up for consideration against as soon as possible.
Stock markets plunged sharply at midday as it appeared that the measure was go down.
House leaders pushing for the package kept the voting period open for some 40 minutes past the allotted time, trying to convert “no” votes by pointing to damage being done to the markets, but to no avail.
Should the measure somehow clear the House on a second try, the Senate is expected to vote later in the week. The Jewish holidays and potential procedural obstacles made a vote before Wednesday virtually impossible, but Senate vote-counters predicted that there was enough support in the chamber for the measure to pass. President Bush has urged passage and spent much of the morning telephoning wavering Republicans to plead for their support.
[...]
The Dow, which had been trading down about 300 points for most of the afternoon, fell to a 600-point deficit before recovering slightly. The index was down more than 550 points as lawmakers scrambled, but failed, to round up votes to pass the package.
The Standard & Poor’s 500-stock index was down 6.5 percent after dropping as far as 7 percent.
(UPDATE) This from Reuters:
The White House, expressing disappointment on Monday with the House of Representatives' rejection of a financial bailout plan, said President George W. Bush would meet his economic team to determine further steps and contact congressional leaders.
"There's no question the economy is facing a difficult crisis that needs to be addressed," White House spokesman Tony Fratto told reporters.