Shocker!
A broad coalition of House Republicans and Blue Dog Democrats did what many believed was unthinkable today – they actually stood up for America’s free market economy and rejected the costliest government bailout in U.S. history.
In a shocking 228-205 vote, the House defeated the $700 billion proposal despite both Republican and Democratic leaders abusing procedure to try and keep the vote open longer than permitted in an effort to twist arms.
If it had been approved, the bailout would have represented the single-largest federal intervention in the free market economy since the Great Depression.
In an unusually non-partisan vote, 95 Democrats joined 133 Republicans in rejecting the proposal, while 65 Republicans and 140 Democrats supported it.
U.S. Rep. Gresham Barrett was the only South Carolina Representative to vote against the bailout, while Republicans Henry Brown, Joe Wilson and Bob Inglis all supported it, along with Democratic Reps. John Spratt and Jim Clyburn.
In a statement issued by his office prior to the vote, Barrett said that he recognized the crisis the country was facing but didn’t believe that taxpayers should become an “insurance policy” for bad financial decisions.
“There are other reasonable options that we should explore to help the markets heal themselves and that would not burden our country under even greater mounds of debt,” Barrett said in his statement. “I was pushing for a plan that would use more free market principles such as a suspension of the capital gains tax and incentives for repatriation of earnings, to help spur economic growth by helping all Americans whose retirement accounts are invested in the stock market, or who own a house, or a business and jump start the flow of funds back into the system.”
You can access the full roll call vote on the House of Representatives website by clicking here.
Even earlier today, it seemed as if the passage of the bailout was a done deal – despite criticism not only for its cost but its unconstitutionality, lack of accountability and the horrible precedent of federal intervention it would set.
After all, the plan had the support of the Bush administration and Republican and Democratic leaders, as well as the support of presidential candidates John McCain and Barack Obama, who will get a chance to vote on the proposal in the Senate on Wednesday.
Still, only 24% of the public approved of the measure, according to a Rasmussen poll taken last Friday.
As for the impact of the decision on America’s volatile stock markets, the Dow Jones plunged nearly 700 points after news of the vote hit Wall Street.
Comments
By Don Johnson on September 29th, 2008 at 4:13 pm
OMG, spines do exist in Washington. Huzzah! Huzzah! Jefferson would be proud.
Now, let’s go back to the drawing board and draw up the quasi-Socialistic bailout plan we need to actually get markets moving again, not the completely socialist plan that Wall Street wrote.
By Alexander Hamilton on September 29th, 2008 at 4:39 pm
I have emptied my checking account, loaded my gun and stocked up. In order to create the urgency needed for a socialist bail out, the fed will close the banks within 10 days. Mark my words, or DUEL!
By AdeT on September 29th, 2008 at 4:53 pm
The most sensible solution I have seen yet is the one offered by John Allison, CEO of BB&T. After pointing out that this was a “Wall Street problem, not a Main Street problem,” and that the staggering majority of main street banks are not at risk, he suggested the following (paraphrased):
Have the government buy up all the houses in foreclosure, the abandoned homes, the unsold speculative homes and the homes under construction. Then either inventory them and sell them off a little at a time, or take them off the market permanently by knocking them down. It would cost dramatically less than the proposed bailout, would immediately improve the housing market, firming up mortgage lenders’ balance sheets, and would keep government intervention to a bare minimum.
I’d love to see Gresham take that up….
By forced to contribute on September 29th, 2008 at 7:51 pm
I will never vote for any Republican or democrat who votes for this 700 Billion dollar bailout. I am NOT willing to pay taxes for the things that all the Washington fools did to this economy. I speak for MANY in my family and have heard the same from friends and co-workers. LET THE BIG WIGS FIX THEIR OWN MESSES.Some or even several people and stocks may hurt for a while, but it will eventually self-correct and I won’t be paying for it.
By Randy on September 29th, 2008 at 8:14 pm
Gresham just got my vote. Goodbye Henry, Andre and the rest.
A republican with guts…wow.
By roofus on September 29th, 2008 at 10:03 pm
What we need now is an independent prosecutor to investigate this “Greatest Financial Scandal of All-Times…”
By nope on September 30th, 2008 at 6:02 am
Why does anyone think it took “guts” to oppose a bill that 70 percent of Americans hate?
By Stroker Ace on September 30th, 2008 at 4:20 pm
If any of you understoof how credit markets worked you would realize that this is needed. This is not about bailing out failed corporations. It’s about allowing banks to lend money to each of us and each other.
By James on October 1st, 2008 at 12:34 pm
Stroking it: Are the banks going to keep lending money to the dredges of society?
Since the failed experiment in affirmative action lending (a.k.a. Community Reinvestment Act) is still on the books this solves nothing! Folks are still in home that they can’t afford. The only shock I have is that the default rate on subprime mortgages is only 40%.
At least the money man at the car dealership can repo the ride to recoup some of the bad debt – how does “the man” recoup the bad debt in this case? There’s no way Barack, Barney, and Franklin (thank God Paulson only has 4 more months at Treasury) are going to repo a home from their “community”.
Does this boondoggle qualify as reparations?
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