The Government Bailout Plan Rejected By The Voters

The Wall Street rescue plan was rejected earlier today by the house voters.

$700 billion emergency bailout plan proposed by the Bush Administration was rejected by majority of voters according to the latest news. The proposed 15-minute vote continued for over a half hour. Dow Jones industrial average plummeted 700 points on the news.

The votes came up thirteen votes short of the number needed for passage of the rescue plan. While Democrats voted for the bailout plan at large, majority of the Republicans voted against the plan.

Earlier today the house was urged to move the measure to the closing, but clearly majority of the house was still in doubt regarding the emergency measure designated to rescue the Wall Street. Bush, speaking earlier at the White House, said, "With this strong and decisive legislation, we will help restart the flow of credit so American families can meet their daily needs and American businesses can make purchases, ship goods and meet their payrolls.” He suggested that while most of the house voters were leery about the rescue plan, majority of the tax payers money contributed to rescuing distressed mortgage-backed securities would be recovered in the upcoming years. He also stated that the measure was to prevent the economic downfall in the country.

The measure was based on Treasury’s request to allow the purchase of distressed financial mortgage backed assets from financial institutions so that the troubled lenders could recommence lending and to allow for the financial and lending markets to function normally.
However, both the Democrats and the Republicans expressed concerns regarding financial constrains put by substantial spending of the tax payers money.

The current financial crisis in the country is a result of the flawed mortgage-backed securities. As real estate prices have plummeted into the worst decline since the Great Depression, following overbearing number of real residential real estate foreclosures.

The bill was to modify distressed loans to stop further foreclosures.