With GOP votes, the House of Representatives rejected Yesterday the rescue package of 700,000 million dollars, designed by the White House to try to stop the stock market crash.
The news triggered a fall in the Dow Jones, the U.S. stock market value of 777 points, the loss in volumes and the greatest wealth in history. In this one day lost 1.2 trillion dollars, almost double the ransom was sought.
The bill, which involves more government intervention in the economy since the Great Depression, received 228 votes in favor and 205 against, and was rejected by both Republicans and Democrats, just one day after the leaders Congress announced that it had agreed to approve it.
The day showed sharp declines worldwide. In Asia and Europe, on average, five percent, and Ireland climbed to 8%. In every major capital stock values \u200b\u200bwere dismembered.
The feeling prevailing in the United States was very similar to that experienced by Argentina during the financial and political crisis of 2001. Americans began to take real awareness that not only their savings are evaporating and their pension funds are losing value but also, no one in Washington seems to be able to take charge of this nightmare. Despite
to George Bush and the leaders of both parties in Congress had reached an agreement on Sunday and insisted that the package was crucial to avoid an even more catastrophic, 228 deputies (133 Republicans and 95 Democrats) voted against while 140 Democrats and 65 Republicans were in favor, displaying a sharp division, especially in the ruling.
Most legislators who voted against the project chose to align with the voters in their respective states who think that banks do not deserve to be rescued with taxpayer money. The Republican argument was thus that the state should not intervene in the bailout. Meanwhile, some Democrats opposed the bill because he considered insufficient. Democrats have always argued that the state must intervene in the economy to ensure its smooth operation, and more in times of crisis.
The vote was a catastrophic defeat for Bush, his Treasury Secretary, Henry Paulson, and even presidential candidate, John McCain, who spent the last Thursday in Congress negotiating to add the votes from Republicans.
In brief remarks with the president of Ukraine, Viktor Yushchenko, Bush said he was "very disappointed."
The fall in international markets began before it was known that the law had been rejected. The stock market in Hong Kong closed four per cent down, European markets followed suit, and at the end of the day in New York the Dow Jones closed down 777 points. The markets also hate that the project is not the original, that is, to be handed a blank check to Paulson and Bush to have all the money at their discretion and without controls.
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