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September 29th, 2008
06:05 PM ET

This exact bailout bill won't pass, but...

[cnn-photo-caption image=http://i2.cdn.turner.com/cnn/2008/images/09/29/art.blunt.jpg caption="House Republican Whip Roy Blunt, (R), is pursued by reporters after the House voted down the Emergency Economic Stabilization Act of 2008."]
Jessica Yellin
CNN Congressional Correspondent

Deirdre Walsh and I spoke with Minority Whip Roy Blunt. He BELIEVES an altered version of the current bill can pass the House. He believes the bill does need change. He suggests it should go to the Senate first but Senate leadership has indicated that they’re *not* inclined to have the Senate vote first. Blunt also says if the stock market continues to fall that could help change votes.

On what's next? Blunt said he's talked to Paulson, Democrats, and Republicans in the House and Senate. Suggested it could be helpful if the Senate were to vote first. Blunt we're "looking to see if there's anything we need to do to improve this bipartisan bill on Senate side so that the House could deal with this in a few days."

Suggests falling stock market and credit crunch could change votes: “Members on the House side will have a few days now to look at impact of no immediate action on the marketplace and see what happens.” “It will also make a difference if the international credit situation begins to push its way down more to the banks we live. If the banker you know calls you and says I’m seeing this credit restriction is real - that will make an impact on what next.”

“Let’s see what happens tomorrow and the next day. You don’t want to react to just one day.”

Should we expect changes in the bill: "My sense is that this exact same bill couldn’t pass. But this bill could be the basis for final congressional action." "They'd have to expect some changes."


Filed under: Bailout Turmoil • Jessica Yellin • Raw Politics
soundoff (71 Responses)
  1. Sandy

    Why not let Americans take a one time withdrawal from their 401Ks (no penalties, no fees, etc.) – a direct payment/transfer to the lender of the primary mortgage? The banks would be paid back and the average American would now be free of their "huge, refinanced" mortgages and able to pay tuitions, buy food, etc.

    September 29, 2008 at 8:23 pm |
  2. mary lv

    Dems shouldn't be blaming the Republicans when 40% of the Dems voted against it.
    Last poll showed the majority of taxpayers were against this Wall Street bail-out, too.
    I'm glad the bill didn't pass. It does nothing for the average guy on the street.

    September 29, 2008 at 8:19 pm |
  3. Eric Vasili Ehrhardt

    I am apalled at how everyone is bantering about using clever terms and half-believable justifications to describe a crisis that is rooted in the unbridled "Me First" attitudes that morphed out of the '60's .... "blowing" off caution in the '80's injected the underlaying "I'm getting mine since the gettin's good and I don't care what you think" to the point it seems avoiding personal accountability altogether is nearly institutionalized!

    Congress and their Playmates on The Street have been changing the Rules for too many years to cover up their mis-deeds, and now that it has hit the fan maybe it is time to allow powers to the Committee to clean house once and for all. As voters, we also have that obligation to set the 'new pace' for our politicians, but as I am forced to close my family-owned retail operations at the end of this year after 60 years because I cannot afford to tap into personal savings to cover the excessive costs that are being invented (to cover State and Fed shortcomings), I recoil at giving anyone 'class' of wrong-doers a bailout when noe was available for me our my fellow businessowners who account for 70% of this Country's business identity!

    Pass the bill because it makes sense, not because it is a partisan show of "brilliance" and then while still holding the bat, open every door on the Hill to drive out the riff-raff that was found sleeping on their watch.

    Time to take names and numbers, and when the time comes, no prisoners!

    September 29, 2008 at 8:16 pm |
  4. Sandra California

    A lot of long faces as those of us in finance understand what this means...to everyone. Only one possible comment...

    On their heads be it! Remember who voted against protecting YOUR interests, Americans. It is in YOUR interest that these financial markets be stable. It's not to save the banks, but your jobs, homes and savings. You don't understand that so get ready to stand in line...for soup, housing, jobs, etc. My father told me about the Great Depression. Hunting on railroad tracks to collecte a few bits of coal to warm their home. Those who ignore history are doomed to repeat it.

    Will those congressman who voted no be out of work also?

    September 29, 2008 at 8:14 pm |
  5. june

    The only way you'll get LEADERSHIP in the US again is if the American people realize that they are as much to blame for this mess as the Republicans. "YOU were the electorate who put the mighty sword mandate in the hands that turned on you with hate."
    They did no more than you ALLOWED them to do.

    It's obvious to anyone who has half a brain that this crisis is being used for political purposes. Anyone who believes that those who voted against it did it out of concern for the American taxpayers must be from another planet.

    However, the US may have to hit rock bottom before they can rise again. Hopefully as a kinder. gentler, smarter and less self centered nation.. Perhaps then, with less flag waving, pin wearing and hand over heart hypocricy they will be once again LOOKED ON as a nation to be LOOKED UP TO.

    Real patriotism is not what you wear, or who you vote for, but the idea that "what you want for yourself you want for everyone equally."

    September 29, 2008 at 8:13 pm |
  6. Bob

    They won't even put there home state's initials after the recorded vote in the House. What a bunch of cowards. Find out who your representative is and make sure he/she does NOT get reelected...this is a travesty.

    September 29, 2008 at 8:13 pm |
  7. Barbara

    yes lets give the 700 billion to the people. That would get the things movin again. Or yet lets vote the numbskulls out of office.

    September 29, 2008 at 8:07 pm |
  8. Tara

    This is just one of many billion dollar bailouts that the Federal Reserve is pushing through. This happens to be the only one that is getting any media as well. The Federal Reserve just approved printing over 85 billion to go to England to help their banks. The Federal Reserve just pumped 600 billion of credit into the market. Our dollar is weakening because the Federal Reserve increases credit and spending. The monetary value is only going to decrease and the problems we are facing are only going to get worse because the way we spend, borrow and inflate. More regulations are needed on the Federal Reserve to attempt them to stop dragging down our monetary value.

    September 29, 2008 at 7:58 pm |
  9. Lee

    The passage of this bill is more important to the president, and his aides because they personally aim to have huge losses. Why doesnt someone in the media view how much the politicians will loose if this bill is not passed?

    September 29, 2008 at 7:55 pm |
  10. Christopher Clay

    I'm glad this didn't pass. I'll loose some retirement dollars but at least my children and grandchildren won't be paying the bill on this one so far. It's odd that it failed with such a close margin but when you read these posts 75% of people think the bail out is bad. It's kind of scary that congress doesn't give a hoot for their consituents. Talk about brazen.

    September 29, 2008 at 7:20 pm |
  11. Leon

    The problem is our Nation's attitude. More loans, more bailouts, more bad spending habits. Sure we can throw $700B of taxpayer dollars out in the mix but that is like putting gas on a fire. Let’s face the facts: The national income average would say we cannot afford $400,000+ homes yet people think they deserve them. Too Bad! We need to put our nation on a financial diet and get back to saving and working hard so we get something we actually deserve. The free ride is over. No more bailouts. Let new and improved banks with good sound lending practices fill the void. No richer real-estate folks getting an easy 6% on inflated house prices. No more day traders working the market to abuse stock prices. No more consumers spending far more than they can afford and wanting others to pay for it. We need accountability and a smart plan for a true recovery. Both Republicans and Democrats seem willing to keep the rich voters satisfied by bailing out businesses.

    September 29, 2008 at 7:17 pm |
  12. george

    it is unfortune that we as Americans are involed in bailing out failure in the corporate world. If these were small businesses, we would just move on as usual; but instead some big wig getting rich while Americans save the world economy. Why don't they just give every american a couple million and let us decide what to spend our monwy on !

    September 29, 2008 at 7:10 pm |
  13. Mea Michelle

    To Gina Clayton all I can say is that you spoke so eloquently for those of us who have had to struggle through hard times. I have been down that road myself and I just had to hang on until times got better. Maybe that is what we all need to do instead of doling out $700 billion so quickly. Could we at least hold out for six months to see how things are going? What is the rush? This, to me, is reminiscent to the run-up to the Iraqi war. Can we get the thoughts of at least 7 bi-partisan economics to give us their best and worst case scenarios for each decision (whether we pass a bailout bill or not)

    September 29, 2008 at 7:10 pm |
  14. JR

    While I firmly believe members on both sides of the aisle should be ashamed of themselves, Nancy Pelosi continues to amaze me with her adolescent approach to this crisis. Grow up for goodness sake and demonstrate some real non-partisan leadership! Quit pointing fingers and get busy on a solution! I don’t think we can afford many more days like today…$1.2 trillion and counting.

    September 29, 2008 at 7:01 pm |
  15. Siege, Atlanta

    I agree with Chuck...

    I say all the greedy scums who made billions on our backs should lose their money for a change. Most of us have been losing money, benefits, and our civil rights for YEARS! We are paying more to survive and getting less. I keep hearing we care going to suffer if we don't bail out these fatcats on Wall Street, but some of us have been suffering! I will gladly suffer a little more to see those white collar thugs lose their shirts!

    LET IT CRASH!

    September 29, 2008 at 6:57 pm |
  16. Tom

    Another failure by the Democrats and Republicans that they can deny responsibility and blame each other. We need to clean house of all the elected officials because they are ineffective and focused on what will benefit their party not the people. On my count this makes 16 years of this behavior. When will we learn and vote the bums out.

    September 29, 2008 at 6:53 pm |
  17. John

    Whoever let this plan be called a "bailout" dropped the ball big time ("rescue" is not much of an improvement either) – it is a government investment. It may be unclear how good a deal the government is getting, or to put it another way, how good a deal banks are getting, but the plan does not call for just giving money away for nothing. In fact, it's very possible taxpayers will make money from the mortgage-backed securities and equity interests that they will have received in return.

    Yet most people seem to think this is a government give-away, and many Representatives (the one's pragmatic/smart enough to realize this is not true yet still vote against the bill) lack the patriotism to risk their re-election and vote for the government investment.

    September 29, 2008 at 6:52 pm |
  18. Jason

    Christi,
    Got the same e-mail, but the math is totally wrong. That amount equates to $80 TRILLION dollars distributed amongst 200 million taxpayers.

    September 29, 2008 at 6:52 pm |
  19. Pat

    This bill is strictly set up to bail out corporations and investors, – if it passes, what happens when they run out of the $700B????? Think about why stocks took a dive today, – because they found out that they weren't going to get the early Christmas present that they were counting on. Washington has been very clear that the problem was caused by the (fraudulent, corrupt) mortgage industry and loans that shouldn't have been written (I say was, because now it also includes many people that put a substantial sum of money down, but now that the market has dropped so low, they now owe more than their property is worth, and if they need to sell, they're stuck in the middle of this), – but this bill does absolutely NOTHING to address that or to help the individual citizens that are facing foreclosure due to this mess, it's strictly about bailing out Wall Street. This bill stinks, and it should fail.

    September 29, 2008 at 6:46 pm |
  20. chuck

    I am delighted to see that the bailout was voted down. Invariably and for years now, the average american ends up going down the drain while CEOs of large corrupted corporate structures are on a self perpetuating cycle of greed and wealth, often rewarding then rewarded back by politicians; the same politicians who claim a responsibility to save the economy at this time.

    Let the damn economy crash, ALL ON BOARD !!!! for ONCE !!!!! we, the normal hard working people have tried it before. How about those politicians try it too !!!

    September 29, 2008 at 6:45 pm |
  21. Craig Reed

    Thumbs up to the Republicans for defeating this give away to the corporate elite. You guys stood up for the little people who has suffered all year due to the greed of big banks taking people homes. Now Wall Street is suffering. Dont be fooled by the many lies coming from Washington about the world coming to an end because the stock market crash. We will all survive and be better off if the market crash. Then we can rebuild with everyone on a more even footing.

    September 29, 2008 at 6:44 pm |
  22. Steve

    Just remember, your 401(k) is tied to the stock market and treasuries. If your Representative doesn't vote for this bill, kiss your retirement goodbye.

    September 29, 2008 at 6:43 pm |
  23. VlG

    That's Power over the Men of this world. Wait until Sarah comes on board. Look out Men!!!!! WOMEN will not be afraid to tell you where to go if you're battering them now. Think about it,

    September 29, 2008 at 6:43 pm |
  24. Steve

    Congressional Job Approval Rating:

    17.8% Approve

    73.8% Dispprove

    No wonder why everybody hates Congress. They're in it for campaign contributions and votes, they're NOT in it to either serve the people who put them in office or their country. Our elected leaders in the House of Representatives should all be voted out of office. Come November, there won't be an incumbent left standing.

    September 29, 2008 at 6:41 pm |
  25. LHouyle

    I am sorry to to say but so much that has gone down in the past week reeks of outright manipulation, and has galvinized the blogging community to act. The left hand of the governemnt makes WaMu "fail" just as the right hand was writing a bailout that would allow to it to be saved in a few days? Billions of liquidity removed by the Fed in a time of a credit crisis? One wonders how much of the crisis is simply holding us hostage and unduly pressuring Congress– as well as an oppurtunist grab by a few Wall Street investment banks who have a sudden need to own banks because of their bad bets.

    That said, any number of solutions, including the very simple one of creating a well-regulated national bank with a temporary charter, would solve the immediate liquidity crisis. The scare of that alone would get the banking cartel off of its duff to fix itself. Of course, an ex-Wall Street CEO player would never let that happen.

    September 29, 2008 at 6:41 pm |
  26. AnnMarie

    This bill does not do enough to help homeowners. I will not vote for any representative that supports this bill. It is the greed of wall street that has this country in this mess. especially bankers.

    Our mortgage keepe adjusting at a rate that we cannot keep up. why cant we have an across the board freeze so people can stay in their homes. Or may I suggest the govt earmark some of that money to put homeowners into a fix rate at 4 or 5% that will stem the foreclosures. my loan just got adjusted and I dont know how much longer I can afford my home. My home is currently worth less than I paid. and that is the real problem, I cannot get a loan to refinance. fix the housing problems and everything else will fall into place.

    September 29, 2008 at 6:40 pm |
  27. VlG

    Thank you beth for pointing out that WOMEN allways had the POWER of the MEN of this WORLD.

    September 29, 2008 at 6:39 pm |
  28. Lenny

    After reading the bill, I am GLAD it was rejected! Since when is rewarding people for bad financial decisions a good thing for my country? Section 110 (page 28) say's it all. If a person had no right to the mortgage in the first place, I do not want my country to finance a reduction in their interest rate nor reduce their principal owed.

    September 29, 2008 at 6:37 pm |
  29. Olly

    Let’s recap:

    Congress supports an unpopular war that costs Americans soldiers their lives, increases our national debt, and ultimately leaves us empty handed.

    Congress rejected a bill that takes action, has no cost of human life, increases our debt temporarily, but has a chance of success that is exponentially greater than that of the Iraq war.

    My fellow Americans, where are our values truly located?

    September 29, 2008 at 6:36 pm |
  30. Steve

    Either the House Republicans vote for this bill or the Republican Party will cease to exist. So instead of Republicans there will be Independents and Democrats.

    September 29, 2008 at 6:34 pm |
  31. Martin Lenk

    We saved a potential worst case loss of $700B for the bailout... and it only cost $1.2T of our savings in stocks. Another great decision by our elected leaders.

    September 29, 2008 at 6:33 pm |
  32. Larry Kraus

    when the dust settles on this vote and the markets stop falling will we still be happy that this bill didn't pass? i see where europe has been throwing their money at the problem they are having. seems like this is a world wide problem after all. then i hear that the Republicans didn't vote for this because they got their feelers hurt. well waaaaaaaaaa they are grownups are they not? if the economy tanks and i mean really tanks the republicans will have to beg for votes to become dogcatchers.

    September 29, 2008 at 6:31 pm |
  33. Lydthekid

    Great! first I lose my job, I have no medical insurance, now this! I wish I was Hillary Clinton, so much for being an American I think that use to mean somthing. count my vote out it means nothing anyway!

    September 29, 2008 at 6:30 pm |
  34. VlG

    I'm with christi, why can't we save from the bottom up? I don't want to say to the children. Christmas is out for 7 years. But, Holloween isn't. Ghouls and Gobblin's get stronger.

    September 29, 2008 at 6:29 pm |
  35. Gina Clayton

    I have a bitter sweet feeling about the 700 billion dollar rescue/bailout plan having failed. On one hand I dreaded the fact of seeing the country I love be totally embaressed by our unruly behavior when it pertains to tax payers money and the treatment we have received from our government as less than royal subjects when it comes to needing and hand up and not a hand out when diversity comes and our finances deminish. But, I say welcome to the world of having no credit for anything because of bad decisons, illness, set backs and job loss. There is an under culture of people such as myself whom have had to endure through this type of crises for years, working every day and never making enough money to save. We only complain to our friends and forward our requests to God because He is the only one who cares enough to see about our every day needs in an ongoing crisis. Hey Wallstreeet...welcome to our crises!

    September 29, 2008 at 6:27 pm |
  36. gnight

    I can't believe Pelosi and Frank have the gall to blaim the Republicans for the failure when they can't even get the votes they need from their own party. 40% of the Democrats voted against the bill. They could have passeed it without a single Republican vote if they could have gotten all of the Democrat votes. This just shows how flawed the bill is. These clowns need to all be thrown out of office.

    September 29, 2008 at 6:27 pm |
  37. Pat Canada

    I truly feel for Americans today and wish each and every one a brighter tomorrow. My thoughts and prayers are with you. If it's any consolation, our stock market took a big dive as well! As I'm sure did the International Markets.

    I dont' have a vote or a stake in this Election but I'd like to say, that I don't agree wih the Republican spin.

    I really think there should have been something in the Bill for Home Owners and the Mortgage Crisis. I don't know if it was a Bill that was needed or one that needed changes. But, just now I heard two Republicans in the Media blaming the Dems for putting the Bill asunder. Their reason – Pelosi's negative statements! I don't think that's a valid reason. I mean are they adults or children? Did they vote No on the Rescue Bill because they're feelings were hurt? If so, they need to Grow Up. The stock market just took the biggest dive in History! Is that the Dems fault too? The blame game is not going to solve anythng. And I really feel John needs to put a Sock in it! I get the impression that the Republicans are using this Bill for political gain, their Candidates Campaign. And if so, shame on them. I truly believe Obama will make the Best President. And Biden was a Great Choice for VP. Thank You. And all the Best to Americans!

    .

    September 29, 2008 at 6:26 pm |
  38. starzzguitar

    I'm glad that there is no bailout. Now, they can either get it right or forget the whole idea. Banks will now be forced to turn those adjustable rate loans into fixed rate loans to stop the foreclosures. I doubt that they will, because they were banking on that mortgage income increasing. Both political parties are at fault, and they know it. I do like the idea of giving us the money directly, even in jest!

    September 29, 2008 at 6:26 pm |
  39. Thomas Baker

    Well the Republicans now have what they wanted...the free market simply correcting itself, as they predicted it would. Feels good.

    September 29, 2008 at 6:25 pm |
  40. Wisdom

    christlaw@hotmail.com

    The E-Mail you refer too has bad math... (Maybe Obama did it)...

    700B divided by 200M is 3500 bucks...

    September 29, 2008 at 6:25 pm |
  41. Lindsay in Ohio

    I don't have 400K in debt and I don't need the government to give me a 400K loan. That idea is worst than the bailout idea. Plus I don't think people who pay their mortgage should have to pay for those who don't.

    September 29, 2008 at 6:23 pm |
  42. John Sommer

    Can someone please explain to me "exactly" what needs to change in the bill and why the bill was rejected? If it was simply petty partisonship, that's ridiculous. Why can't we get "real news" over this issue regarding what specific items in the bill lawmakers objected to?

    September 29, 2008 at 6:23 pm |
  43. J'nae Behrens

    The email referred to by christlaw regarding a U.S. government business bailout deal would be nice if it were true – unfortunately, the numbers are egregiously wrong. The government's proposed $85 billion bailout of American International Group (AIG) works out (based on a population figure of 200 million adults) to a total of only $425 per person, not $425,000 per person as claimed in the email. Whoever did the math misplaced an important decimal point...

    September 29, 2008 at 6:23 pm |
  44. keeter

    That's the problem, people would spend and not pay down their current debt. In my line of work, I see it everyday. They ignore their bills and spend, spend, spend. Putting this kind of money in the hands of many Americans is a frightening thought.

    September 29, 2008 at 6:21 pm |
  45. bethsterns

    Com' on - Pelozi's words were fighting words. She claimed all the glory and gave Republicans no where to go but to no. She held out a carrot to get it passed, then threw it over everyone's heads. Let's place the blame right at the feet of those responsible - our elected officals - all of them and their shenanigans as they dance with the monied interests of our country who help them stay in office. How about everyone getting the same healthcare AND retirement benefits and ability to go back to work keeping all the retirement benefits that agovernment officials at all levels have. WE after all pay their salaries and everyhthing else so precious to them.

    September 29, 2008 at 6:19 pm |
  46. Sam Osborne

    House Republicans are now blaming their vote that killed the financial rescue package on a speech given by the Speaker of the House? Is the nation to understand that these Republicans are so juvenile that they would let their noses being out of joint cause them to vote against he best interests of the nation?

    If they thought the measure was a bad thing, that is one thing, but it is totally irresponsible to lash out at the nation as a form of pouting.

    September 29, 2008 at 6:19 pm |
  47. Matt

    chrislaw, it won't happen because a) it makes sense, and b) doing that doesn't help reward bad business and CEO's who got us into this mess. Gov't is too busy helping those they play golf and vacation with to care about us.

    September 29, 2008 at 6:17 pm |
  48. Joseph Stansil

    We need Obama to speak more definetively about our economy! Why are we seeing John McCain getting press about his "so-called" involvement in this crisis and his party controlling the decision making process. We need Obama to speak to all of us, the poor, middle and rich! We are all losing money and credit. My mother who is 70 and has worked more than 50 years has lost over a 100K of her 401K from the lack of leadership during this time. We need a leader to step-up. Bush is not that leader and certainly John McCain is not. I'm hoping and praying Obama hears our cries for his brand of leadership! It is time for the "urgency of NOW! Please step up Barrack Obama!

    September 29, 2008 at 6:16 pm |
  49. TR

    Blunt also says if the stock market continues to fall that could help change votes.
    -----
    Awesome. I'm glad these clowns are willing to change their minds if the DJIA drops even more. Meanwhile how many 401Ks are going to go down the drain.

    September 29, 2008 at 6:14 pm |
  50. christlaw@hotmail.com

    I just heard about an email today that talked about bailing out the American people instead of the banks. If they could give every citizen over the age of 18 400K (that's 250K after taxes of course) people would be able to pay down their debt which would not only help them, but also the lenders that they owe. This would also allow for people to want to spend, which in turn will help our economy... why can't we do this?

    September 29, 2008 at 6:09 pm |
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