Wall Street Bailout Fails - WLBT.com - Jackson, MS

Jackson 09/29/08

Wall Street Bailout Fails

By Marsha Thompson
marsha@wlbt.net

The vote to bailout Wall Street and toxic mortgage loans was split along party lines by Mississippi Congressional representatives. Congressmen Bennie Thompson, Travis Childers and Gene Taylor, all Democrats voted against the bill. Third District Congressman Chip Pickering, a Republican voted for the bail out package.

At this junction there will be no $700 billion  financial bailout for Wall Street. The House of Representatives balked- markets plummeted. The blame game is in full swing on Capitol Hill. Now what? House members said no to the rescue of Wall Street despite urgent pleas from President Bush and Congressional leaders. When the vote was tallied, too few members of the House were willing to support the unpopular measure.

A high stakes, high drama proposal designed to get toxic mortgage assets off bank's balance sheets to stimulate lending and prevent freeze up in global financial markets. President Bush expressed his dismay. In a tailspin hastily called meetings are underway to come up with a back up plan. As word of the financial tsunami slammed home. The Dow Jones Industrial went into a free fall as much as 777 points . The largest drop ever-400 points in 10 minutes. One analyst pointed out "this isn't a market for the timid."

And the morning headlines broke word of other financial shakeups. Citigroup buying out troubled Wachovia's banking operations for $2.1 billion dollars. A deal arranged by federal regulators, a deal the FDIC backs to ensure full protection of depositors. Late today the Treasury Department said they will pull out all the stops to protect the financial markets and the economy. No word on what's next.

Observers say it was a hard landing for a hard to swallow bill designed to save banks who bet everything on the housing bubble, votes cast by wary lawmakers who have to face voters in six weeks.

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