Are We Smart Enough To Avert Financial Meltdown?

Last week, Kimberly Amadeo outlined why the "bailout" was needed to avert a financial meltdown. Today, the House has rejected (228-205) the bipartisan plan developed between the White House and Congressional Democrats and Republicans.

At least the House had sense enough to reject a motion to adjourn (394-8).

The Great Depression resulted from a confluence of actions and choices, some of them irrational. And it was emotion, not reason that caused the demise of Washington Mutual last week: depositors withdrew $16.7 billion despite FDIC insurance for all deposits up to $100,000.

The immediate fallout from the House vote is another drop in stock value. Hold on tight; the ride is bumpy.

Roll Call Votes:

• 2:07 PM Eastern. H R 3997 (205-228). Not party line vote: Ds, 140-65; Rs, 95-133. To amend the Internal Revenue Code of 1986 to provide earnings assistance and tax relief to members of the uniformed services, volunteer firefighters, and Peace Corps volunteers, and for other purposes.
• 8:36 AM, Eastern. H RES 1517 (217-196). Party line vote: D, 214-3; R, 8-188. Procedural vote. Rule providing for consideration of the Senate amendment to the House amendment to the Senate amendment to H.R. 3997, the Emergency Economic Stabilization Act of 2008.
• 8:45 AM, Eastern. H RES 1517 (220-198). Party line vote: D, 209-11; R, 17-181. Procedural vote. Rule providing for consideration of the Senate amendment to the House amendment to the Senate amendment to H.R. 3997, the Emergency Economic Stabilization Act of 2008.

Related:

• Bailouts and Civil Liberties, Tom Head
• The Financial Crystal Ball: Washingtonian Magazine, 2002, Kathy Gill
• Learning From Others: The Swedish Experience, Kathy Gill
• Ten Reasons Why Bush's Proposed Bailout Is Larceny, Deborah White
• Americans Say NO to Wall St Welfare, Deborah White