Live blogging House bailout debate

11:39 A.M.: Both parties trade blame and charges of partisanship. In a press conference carried live on CNN, Republican Rep. Eric Cantor blames House Speaker Nancy Pelosi for the defeat of the bailout, saying she set a partisan tone during the debate that offended Republicans and that she failed to deliver enough Democratic votes. Earlier, CNN reported that Democratic Rep. Barney Frank had blamed Republicans for the bill's failure, saying future bailout efforts are "up to the Republicans."

11:36 A.M.: The Los Angeles Times reports that the White House lobbied Republicans right up until the vote, in an ultimately unsuccessful effort to overcome Republican objections to the bailout: "Right up until the roll call, [President] Bush, [Dick] Cheney and [Henry] Paulson and industry groups called skeptical members of the president's party. Deputy White House Press Secretary Tony Fratto said they worked one-by-one through a list of potentially recalcitrant Republicans, seeking to answer their complaints."

11:33 A.M.: House Minority Whip Roy Blunt, the Republicans' top vote-counter in the House, tells a news conference that he miscounted -- he believed Republicans had a dozen more votes for the bailout than they really did. He blames "partisan discussion" for the failure of the bill.

11:31 A.M.: Deidre Walsh, a CNN producer who was inside the House chamber during the vote, describes the final moments before the bailout failed. Walsh reports House Speaker Nancy Pelosi shook her head, and the House fell unusually silent when the gavel came down indicating the vote was over. Walsh called it "an unbelievably extraordinary moment," unlike anything she had ever seen on the House floor.

11:13 A.M.: The Los Angeles Times reports the bailout has failed in the House.

11:08 A.M.: CNN, reading wire copy live on air, reports the bill has been defeated in the House. Some confusion evident on the House floor. The Dow industrials fall 616 points. CNN had earlier pointed out that a Dow sell-off of this magnitude "is not a crash."

11:03 A.M. Tally unchanged, 226 against, 207 for. Fox reporter: "The arm-twisting goes on, this is not a done deal." The bulk of the bailout opposition is coming from House Republicans.

11:00 A.M.: Tally unchanged: 226 against, 207 for. Voting remains open. 217 votes are needed to pass the bailout.

10:57 A.M. Dow is down 468 points. Tally unchanged: 226 against, 207 for.

10:54 A.M.: Tally unchanged: 226 against, 207 for. Fox News anchor observes, "It looks like, for the time being, the $700 billion bailout has failed in the House." Voting, however is still open; members of the House can change their votes. The bailout has not yet failed.

10:52 A.M.: Dow industrials bounce off their lows, now down 399 points.

10:51 A.M. One arm has been successfully twisted. One "no" vote switches to a "yes," the tally is now 227 against, 206 for.

10:49 A.M. 228 against, 205 for, one not voting. Among Republicans, the bailout is failing by a 133-65 vote; Among Democrats, it is favored by 140, opposed by 95. Voting is not yet final. Much discussion on Fox News of whether leadership can twist enough arms to change the outcome.

10:47 A.M. 228 against, 205 for, one not voting. These are not yet final votes. The Dow is down 503 points.

10:46 A.M. 224 against, 202 for. Voting remains open, these are not final tallies.

10:45 A.M. Dow industrials plummet 600 points as bailout vote continues.

10:44 A.M.: 213 against, 192 for.

10:42 A.M.: 201 against, 185 for.

10:41 A.M. 180 for, 171 against.

10:39 A.M.: A Fox News analyst raises the possibility that the 15-minute time limit on voting may be extended, noting that in close votes in the past it has been extended for up to 3 hours.

10:38 A.M.: 155 for, 148 against.

10:36 A.M.: 136 for, 139 against.

10:35 A.M. PDT: 126 for, 119 against.

10:33 A.M.: 117 for, 98 against. Fox News anchor Brit Hume, covering the vote tally, calls the bill "wildly unpopular."

10:30 A.M.: Updated tally: 108 for, 74 against. Among Democrats 78 for, 31 against; Among Republicans, 30 for, 44 against).

10:27 A.M.: Early voting: 93 for, 59 against.

10:26 A.M.: The 15-minute voting period begins.

10:25 A.M.: Majority Leader Hoyer: "The people, by an overwhelming majority, have asked us to act." He notes, however, the people have not specifically asked the House to act by passing the bailout. Hoyer wraps, debate is over at 10:26 A.M.

10:24 A.M.: Majority Leader Hoyer: "The alternative is nothing and that is not acceptable. ... We are doing our best to forestall ... a disaster."

10:21 A.M.: Majority Leader Steny Hoyer, arguing for the bailout, tells the House it will likely cost far less than $700 billion, saying CBO does not believe the price tag will be anywhere near $700 billion.

10:19 A.M.: Majority Leader Steny Hoyer reminds House, just prior to vote, that both presidential candidates favor the bailout. "With this bipartisan rescue plan, I am hopeful ... that we will prevent the worst-case scenario."

10:18 A.M.: Majority Leader Steny Hoyer of Maryland, making final appeal for the bailout: "This is a day of consequence for the American people. ... None of us is an island. We're all bound together in boom or bust." Warns of coming foreclosures and bank failures if Congress doesn't act.

10:15 A.M. PDT: Minority Leader John Boehner: "I believe that Congress has to act. These are the votes that separate the men from the boys and the girls from the women. ... I believe it's in the best interests of our country today to vote for this bill ... to keep ourselves from the brink of an economic disaster."

10:13 A.M. PDT, Rep. Barney Frank, chief House author of the bailout, makes a final appeal for the bill, asking the House, "Please don't throw it out."

Comments

[say what?]

we are missing a piece of info here...how many votes does it need to pass?

Is a majority enough? Or do they need more than a majority?

[The End is Noir]

Thanks for the updates, Pete.

If the Republican votes are 2-1 against, that tells me people not wanting to switch have a lot of support. I hope not enough switch votes.

Am I the only one who finds it ironic that the Republicans are voting to not bailout Wall Street and the Democrats are?

[Radioceleb99]

LEAVE PARTISANSHIP BEHIND! VOTE THE INCUMBENTS OUT !....

The ridiculous argument that congress is making boils down to one basic premise: that these 2 ordinary guys (one who never lead anything other than a classroom and the other who made his fortune gambling on Wall Street) can all of a sudden predict with certainty the economic future of this country. If these 2 guys were so smart why weren’t the ringing the alarm bill months ago?

The fortune tellers however do deserve credit for accurately predicting that top congressional leaders were so beholden to Wall Street for years of financial support that they would work weekends in backrooms to get the big fix in. However it still begs the question that: if this really is a national economic crisis then why are our legislatures negotiating the details of the solution in secret behind closed doors instead of on the floor of the houses.

You would think that given that the cost of this bailout is almost $10,000 per household that congress would hold lots of hearings with expert economists and scholars far and wide to seek some kind of consensus or assurance that this $10,000 for tax bill every American household would solve the problem.

According to these two fortune tellers (the gambler and the professor) the bailout purpose is to buy stuff no capitalist will touch in an effort to free up money. Well from my experience there nothing like a bargain to get people to buy and put money to work. Why don’t we pass legislation that forces the banks to sell either write down or sell the assets. If the bank fails we let the FDIC step in and protect the taxpayer. After all it is their job.

These two fortune tellers (the gambler and the professor) also said it is import that we free up money so that the banks can lend to businesses for investments and to consumers for purchases using credit cards and other loans. They say that absent this bailout companies would have no money to expand or, in some cases, to make payroll. Seems like if companies can’t meet payroll without a loan they are already too far gone. Credit tightening for consumers sound reasonable given that the problem is a result of consumer credit being too freely available. Experts agree that regardless of what happens, good people with good credit who are not overleveraged will still be able to get a loan

PIGS GET FAT and HOGS GET SLAUGHTERED
The gambler and the professor bet correctly that the upcoming recess and Jewish holiday would allow them to rush the bailout through. The Congressional leadership did their part by telling their party members that they can sidestep repercussions of voting for the bailout with the same ease as they did for the voting for going to war. They think that if you claim that everyone is suffering and that they believed that they acted selfishly to try and prevent a the deep and prolonged recession that it will give them the political cover they need.

The American people will not be so easily fooled.
Despite all the hype and hysteria from the fortune tellers (the gambler and the professor) congress might come to its senses. It might realize that even if the markets do decline that it is not going to be the end of the world despite what those two fortune tellers think. Because if the bailout is the right answer it will be able to rescue and resuscitate the markets from the worst case scenario whether it be 3 days, or 3 weeks or 3 months from now.

It is time for the American People to wake up and take this country back from the special interests. Tell everyone you know that we all need to send a message to Washington that the voice of the American people stills counts by voting out each and every incumbent who votes for the bailout without an open debate.

[Anon]

You are "live blogging" while quoting Fox News? So, you are watching on TV? At least stick with C-SPAN for God's sake if you can't get in to the House chamber.

[anonymous]

The stock market is crashing and they're all afraid to vote for it because they won't get re-elected. Got news for them. They aren't getting re-elected anyway. Too late.
Throw the bums out!

[peteviles]

Anon writes, "You are "live blogging" while quoting Fox News..."

Thanks Anon. Maybe Sarah Palin can see Russia from her house in Alaska, but I can't see the House floor from my desk in downtown L.A., so I used my computer and a TV.

I couldn't make the CSpan plug-in work on my computer, so I watched the vote on MSNBC.com (excellent live video, btw) while also monitoring sound from CNN and Fox News on TV. Sorry if that offends your world view, but I wanted to hear a little of what was being said, and pass it along to readers.

[Bob]

Finally someone stood up to the moral bankruptcy and financial blackmail of the Bush administration!

[David]

Are these people insane? The Republicans will really take down the entire country? The Republican Party has denigrated into a froup of right-wing extremists, and the Democratic party had better hit them hard for doing this to the US. Only a crushing defeat for the Republicans in November will send a message that, in times of national crisis, idealogy must be set aside and bi-partisan solutions must be found.

[RichW]

Nice play-by-play Pete.

Its interesting to watch how the market reacts. Banks with minimal bad-mortgage exposure (Wells Fargo) are holding quite well. However look up First Federal, Imperial Capital, Downey, National City, etc. for some interesting numbers. Oh, and if people aren't already aware, Wachovia just got gobbled up...

[fezco]

Thanks for the live blog Pete. Good summary. So many of the LALAND contributors wished for this. Any regrets? How all of this is going to play out is a mystery, however, I begged my congressman to vote no mainly on the fact that this was a massive power grab that is being rushed through.

[same as it ever was]

The Wall Street Bailout Bill:
Bush McCain Obama et al.

The Realignment Of American Politics:
Anderson Baldwin Carter Choate Clemente Gonzalez Gravel Kaptur Kucinich McKinney Nader Paul Perot Sheehan Ventura

[bigunit]

Glad to see that the House Republicans have the guts to stand up to their fear mongering leader..it's about time! Dems need to grow a frickin' spine and stand up for their constituents.

[GDC]

How about a revised bill - one I would support. The government buys these worthless securities at auction prices. If these banks ever make a profit in the next 20 years, the profit will go straight back to the taxpayers. No bonuses. No dividends. No golden parachutes. If the banks are truly in dire straights, they should be fine with this proposal.

I just don't believe Paulson that this is life or death for our economy. Just like I didn't believe Bush that Iraq posed danger to the world.

[Karl in Burbank]

How come the dow isnt at 7000? I guess all the billionaires that wanted their free loan were wrong.

[Lois Carey]

I am incensed that the republican side of the
house of representatives .after failing to vote
for the bail-out bill ,are spinning their vote as
being influenced by Nancy Pelosi or any other
Democrat.
I was not in favor of the bill, but after being glued
to the TV and listening to all the arguments felt
that most likely it had to be.
This bill was put forth by a Republican President
and his representatives, and after a lot of hard
work by what appears to have been mostly
Democrats,( except for John McCain) who came
to town for a photo-op.was defeated by the
republican house .
Eric Cantor may be a rising star, but I would not
vote for him for dog-catcher. I was born in
Virginia, own property in Virginia and feel sorry
for that state if he is their representative.
The only time I heard from him on the bill was
when he came to stand in front of the cameras.

So much for Mr. McCain and his policy of
reaching across the aisle.( to Smack Nancy Pelosi
in the face for her hard work.

I consider myself an Independent voter, but
the Republlicans Have shown nothing but
partisanshiip on this bill.

Barney Frank, Nancy Pelosi,
Steny Hoyer,Chris Dodd,
worked so hard, only to
have the republicans try
to blame them for the
failure of the bill and
any adverse effects on
our Country.
Mostly I only heard from
the republicans when they
came before the cameras
to complain.Hiding in their
offices so as not to be
blamed for anything that
came out of their mouth.

[LMUser]

Good for the Republicans. This is a great day. Now I will be able to buy a house....

[Vic Muchado]

Nothing was more pathetically sickening than watching as Wall Street`s beggars WATCHED to see that their free billions were not on the way, at which point the functional markets began throwing a manufactured tantrum, to try to get their undeserved feast of the little mans tax dollars.

Let wall street fall a few thousand ponits and then maybe it will be interesting enough to bother even watching. 5-600 points, take your tantrum and get oever it, NO MONEY for you fat cat!!

End this phony credit centralized bank economy and give the Wall Streeters a shovel to earn money (the pittance the rest of us get by on) by WORK.. you know the sweat of your brow and all that. You wont need the silk suits or armani ties anymore softies..

[annoyed]

Lois,

Do I even respond-

Pelosi "worked hard" on what? I guess you don't know that her husband owns 17000 shares in AIG.

Read the revised bill, it's a joke.

Thanks to the people who called/wrote and the house Republicans for listening this didn't pass. If it weren't for these two factors, the bill would have passed. Pelosi and her liberal friends are hypocritical crooks.

Waxman needs to be voted out. Why do people keep voting for that rat?

[puckhead]

Good post Lois Carey. Regardless of how we all feel about this bailout plan, this credit crisis originated in the US and the world is looking to the US for leadership and a plan to address this crisis. Congress going home to prepare for an election is not an option. They have more important things to do. The Repub's need to work with the administration to create a plan that they can support, then they can try to sell it to the Dem's. It's ridiculous that a Repub President could not get his own party to sign off on the plan and had to go instead to the opposing party. If Congress adjourns w/o a plan, it is a clear sign that members care more about getting re-elected than solving this problem.

[Luka]

Vic - You do realize that when Wall Street falls it's not only fat cats that get hurt right? I'm by no means a fat cat and already lost 25% of my retirement funds this year alone. Thanksfully I'm only 37 but what if I were 67?

I think there's not one of us reading this blog that doesn't shake their head and full unbelievably frustrated that these corporations and banks gave loans to people who were unqualified and now stuck us in a nightmare situation but do we cut our nose off to spite our face or do we act like adults and remedy the situation the best we can.

Yeah, right on Republicans, I get it - you needed one thing to show to the American people you got "right" in the past 8 years. History will show it to be your biggest blunder yet.

[Nick]

Live blogging presents: real Congresspeople of genius!

Today we salute you, Nancy Pelosi, for proving that even total incompetence is occasionally rewarded with accidental success. Your incredibly boneheaded partisan speech about the bailout bill being a rejection of the Bush administrations entire term caused some otherwise complacent supporters to come to their senses and vote it down. By reaching deep for a little more venom and partisan bashing, you snatched victory from the jaws of defeat!

Here's to you, Nancy Pelosi, for being the unintentional hero of the day. May your partisan politics and steadfast determination to bash the Republicans at every opportunity regardless of the consequences derail all bills you favor in the future, and save the country from the bailout disaster for many votes to come!

[Edmund Scanlan]

Maybe defeat of bailout is for the best; but clearly those who blame defeat on partisanship don't have the courage to stand by their up or down vote on the bailout.

[Debbie Mintz]

I don't believe the government should bail out wall street and hope the money trickles down on the people. The people are just getting pissed on and wall street walks away a winner at our expense. They said on the news that the 7 billion dollars would equal 11,000.00 per house hold. GIVE IT TO THE HOUSEHOLD and let wall street suck it up from the people like they usually do. American's already bear the weight of the world and now we have to take care of Wall street too. IT IS THE PEOPLE'S TURN TO BE BAILED OUT! I don't mean that little measley 600.00 we got the last time. People could save their home if they had the 11,000.00. IT IS TIME TO GET PRIORTIES STRAIGHT AND TAKE CARE OF US FOR A CHANGE!

[prudence]

Thanks to both the Republicans and Democrats who had the courage to vote no on this bill which could be much better. Now they're being bullied by their respective parties.
Hope they hold their ground--anything Bush or Cheney or Paulson et al want is not good for the people of this country it's only good for them and their buddies.

[dbordier]

Caveat!!!!! Repeal Sarbanes-Oxley, it is responsible for current crisis. Don't try to fix one crisis, with yet another one.