House Defeats Bailout Bill – What Now?

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.