FullosseousFlap’s Dental Blog

Obama pundits are cting Obama = FDR.

And, how many years and what World War brought the United States out of the Great Depression?

Who are the REAL Pirates?

The House on Monday defeated a $700 billion emergency rescue for the nation’s financial system, ignoring urgent warnings from President Bush and congressional leaders of both parties that the economy could nosedive into recession without it.

Stocks plummeted on Wall Street even before the 228-205 vote to reject the bill was announced on the House floor.

Bush and a host of leading congressional figures had implored the lawmakers to pass the legislation despite howls of protest from their constituents back home. Despite pressure from supporters, not enough members were willing to take the political risk just five weeks before an election.

The fact is the American voters did not support this unprecedented government intervention and do not believe President Bush or Congressional leaders.

Now, both Barack Obama and John McCain should get their asses back to Washington and work with their respective parties to craft an acceptable compromise solution. Or, get the hell out of the way and let the free market correct the largess of the housing bubble.

Update:

The roll call vote is here.

Flap’s Congressman, Elton Gallegly voted NO.

Though Sen. Chris Dodd implied that Sen. McCain sandbagged the rest of the negotiators by bringing up alternative proposals, McCain himself did not bring up those proposals, according to four independent sources briefed by four different principals inside the meeting, including two Republicans and two Democrats.

“McCain has not attacked the Paulson deal,” said a third Republican who was briefed by McCain direclty. “Unlike the [Democrats] in the [White House] meeting, he didn’t raise his voice or cause a ruckus. He is urging all sides to come together.“

Looks like John McCain is putting country first and the Democrats are trying for political advantage.

Just saying……

The fight over the Bush administration’s plans for a $700bn financial rescue package unnerved markets and spilled over into the US presidential race on Wednesday as John McCain, the Republican nominee, said he would put his campaign on hold until a deal was reached.

Amid uncertainty about the plan’s prospects, US money market funds controlling thousands of billions of dollars in assets led a stampede to safety, buying short-term government debt, selling commercial paper and withdrawing funds from the interbank market. As a result, the rates that banks charge each other soared, while yields on Treasury bills plunged.

As officials struggled to address the mounting political objections, Ben Bernanke, Federal Reserve chairman, told Congress turmoil in the markets could lead to greater economic pain. Peter Orszag, head of the Congressional Budget Office, warned lawmakers of possible “chaos” if Congress did nothing. “You would have a financial market meltdown that would cause very severe dislocations  . . . maybe on the magnitude of the Great Depression.”

Back to the drawing board tomorrow but they better work quick and through the weekend if need be. If the credit markets seize up then the layoffs start on Monday afternoon.