The US House of Representatives defeated the mammoth bailout package for Wall Street this afternoon by a vote of 228-205.  The move sent markets reeling with the Dow Jones Industrial Average dropping over 700 points before recovering slightly.   Details are still emerging regarding the machinations of this coup against both Democratic and GOP party leadership, but it is clear that “No” votes came from both sides of the aisle in striking this record bailout package down.

Like virtually everyone following this unbelievably important story, I have had my share of doubts about bailing out an industry that got itself, and the rest of the country, into this enormous mess.   However after research and much reflection, it is clear that something desperately needs to be done.   The credit markets in the United States are on the verge of falling apart, with nobody having access to the capital they need to run their business, buy property or loan between banks.   In a system such as ours this is an untenable situation.   American needs free flowing credit - to qualified borrowers - in order to function.   It is as simple as that.   Striking down this bill is preventing a desperately needed package from helping to revive the economy.

You can takepart by contacting your Representative in Congress and demanding they pass a responsible bailout package now, before it’s too late.

LINKS:

NY Times: House rejects bailout package, 228-205; Stocks plunge

AP: House defeats financial industry bailout bill

CNNMoney: Bailout plan rejected