Tuesday, September 30, 2008

A shock from the House

From Economist.com

The House of Representatives rejects the $700 billion bail-out plan

IT WOULD have been one of the most unpleasant laws that Congress had found itself writing so close to an election. Devoting $700 billion of taxpayers’ money to rescuing the country’s least popular industry was clearly not a vote winner. That Democratic and Republican congressional leaders held their noses this weekend and came up with the Emergency Economic Stabilisation Act was encouraging evidence that they appreciate the gravity of the financial crisis. But with a vote of 228 to 205, the House rejected it. World stockmarkets promptly slumped...

READ THE FULL ARTICLE FROM THE ECONOMIST HERE