House defeats bill, Wall Street reacts

The House of Representatives has just defeated the Bush administration's $700 billion plan to deal with the credit crisis.

And Wall Street's reacting.

"A vote for this bill is a vote to prevent economic damage to you and your community," said President Bush this morning.

But in the end, a plea from the President couldn't overpower thousands of phone calls from voters angry that lawmakers would even consider spending 700 billion to bail out Wall Street.
Despite a weekend deal, including many of the restrictions democrats pushed for and even the debt insurance republicans wanted to make Wall Street pay, lawmakers said no.

"I say we go back to the drawing board. This deal does not do it for the American people," said Ohio democrat Marcy Kaptur.
If I didn't think we were on the brink of an economic disaster it would be the easiest thing in the world for me to say no to this, said Ohio Republican Congressman John Boeher.

The DOW took a horrendous 700-point plunge during the vote.

Earlier, supporters warned no bailout could be disastrous for Americans needing credit.

"A wholesale failure of banking system would be the equivalent of an economic heart attack," said New York Democrat Congresswoman Carolyn Maloney.

"The evidence is overwhelming that we must act," said Republican Congressman Adam Putnam of Florida.

There are democrats voting against it.

"You think they'll be responsible with this money? Think again!" said California Democratic Congresswoman Lynn Woolsey.

And republicans voting for it, "I wanted the republican alternative, but we don't have the votes for that," said California Republican Congressman Dan Lungren.

"The consequences will be a much more dismal near economic future for the United States," said Massachusetts Democratic Congressman Barney Frank.

It's a compromise that everyone agrees could've been avoided and no one's completely happy with.
So what's next? President Bush meets his financial team this afternoon.

They'll be calling lawmakers on the hill to figure out a plan b.

The House will reconvene Thursday to find a new solution.