In Rebuke of McCain’s Leadership, House Rejects $700 Billion Federal Bailout

ImageAll eyes were on the House of Representatives today, as the leadership in both parties tried to rally enough votes to pass the $700 billion bailout of the banking sector, but in the end, the bill failed by a vote of 228-205 against, thus possibily dooming both Wall St. and the presidential campaign of John McCain.

Before the vote, Minority Leader Rep. John Boehner emphasized that he did come to Washington to vote for these kinds of bill, but he urged his membership to do what needs done, and vote for the bill. The Democratic chairman of the House Financial Services Committee, Rep. Barney Frank said, “Many of us feel that the national interest requires us to do something which is, in many ways, unpopular. It is hard to get political credit for avoiding something that has not yet happened.”

Frank hit the nail on the head. Opposition to this bill was based on ideology and self-preservation. The House Republican ideologues were opposed to this bill because it violates their ideology, but also because they are up for reelection this year, and they are terrified that they will go home to campaign, and find that their opponents are running ads against them, and their vote for this bill.

The bill was expected to fly though the Senate, and be signed by President Bush by mid-week. Politically speaking, this crisis could not have come at a worse time. The Congress is about to adjourn for the fall to go home and campaign, and the House is even more infused with election year politics than usual. I think what many people don’t understand about this crisis is that it started out as a banking and lending crisis, but quickly morphed into an entire market wide crisis of confidence.

Earlier today, John McCain was in Ohio taking credit for making the bailout agreement happen, only to see 133 House Republicans vote against the deal. Apparently, Sen. McCain isn’t the leader that he claims to be as in the end, he could not get enough House Republicans on board with the plan. This is a stinging defeat for McCain who painted himself as riding to the rescue of the bailout last week.

The three big losers here are John McCain, Wall Street, and the economy as a whole, because without passage of this bill, nobody knows where the economy is going to go next. Only 66 Republicans crossed over to join with Democrats and vote for the bill, while 94 Democrats joined with Republicans in voting against it. Republican House election year politics won out, over both an economic crisis, and the urging of their own presidential nominee. In one swoop, House Republicans may have doomed both Wall Street and the presidential campaign of John McCain.

17 Replies to “In Rebuke of McCain’s Leadership, House Rejects $700 Billion Federal Bailout”

  1. Shoot from the hip, strike oneself in the mouth. John McCain does it again. Between him and Palin, its becoming like a cartoon to watch them. ENOUGH!

  2. Pelosi had a failure speech before her vote. Why vote if you cannot ensure the results-from your own party.

    The democrats are majorities in both the house and the senate, yet 94 Democrats voted against Pelosi’s plan, while Barney Frank is blaming 12 Republicans out of a total of 66 that voted no.

    Common Sense says the obvious. Barney Frank is an idiot, Pelosi is a failure and anyone who blames the other team’s 12 before going after his own team’s 94 is playing partisan politics which they said he would not do. BTW, do those 66 Republicans and 94 Democrats have a conscience, or are they idealogues? Watch out what you say since the majority of them are Democrats!

    Anyone understand why the congress gets a 14% approval? Because 14% are in a coma. The number should be 0 as long as Frank, Pelosi, Emanuel and Dodd are spokesmen.

    And this article blames McCain? Blame your parents for your defective gene pool. And your blame should be directly pointed at your ability to speak and write such nonsense.

    The bailout is for Fannie, Freddie, and all gov’t backed mortgage securities that were forced to lend to undercredited, underequitied, underprivileged borrowers so they could buy homes that they could not afford using normal time proven credit standards. Carter (Community Reinvestment Act) and Clinton (threatened lenders-Jamey Gorelick, Franklin Raines-first in Clinton White House and then put in control with Fannie Mae, and made $26MM and $90 MM respectively at Fannie Mae) put these plans into effect to cater to their constituents, and cry foul to the Republicans for not overseeing the rules. What rules? Banks were told and threatened to lend to people with no credit and no equity and Fannie and Freddie would buy the mortgages and package them for sale to the Merrell Lynch, Lehman Brothers and other Wall Street banks with good mortgages. Bush 1, Reagan, and Bush 2 had nothing to do with it, and even when John McCain tried to raise consciousness about it in 2005 he was voted down-by the Democratic Majority.

  3. Common Sense:

    Let me throw some of your “common sense” back at you. You said, “anyone who blames the other team’s 12 before going after his own team’s 94 is playing partisan politics.”

    And then you close your “argument” with, “Bush 1, Reagan, and Bush 2 had nothing to do with it,” but you certainly single out Carter and Clinton.

    Well, by your crazy rationale, anyone who blames only 2 of the previous sitting presidents totalling only 12 years leading the nation over the other three, totalling 20 years in office…is a big fat idiot.

    Ok, that last part wasn’t yours; But you get the drift. How about a little consistency. Better yet, how about a little…what’s that phrase I’m looking for…

    …common sense.

  4. Is that you, Ann Coulter? Because I swear I read this exact article on MSNBC this morning making sure to blame Clinton and all the Deomcrats in Congress and the Senate and all the irresponsible minorities buying homes for what is going on in Wall Street. And I ask one thing…how can McCain be shot down by a Democratic Majority in 2005 when the Republicans had 10 more seats that year in the Senate? In fact, it is only barely a Democratic majority now and that is when you count Bernie Sanders and Joe Lieberman for the Democrats (2 independents, and one who spoke at the Republican Convention this year.)

    Banks and lending institutions were not threatened to lend to unqualified borrowers as much as those banks and lenders decided to jump on board to make short money to create liquidity that wasn’t really there. They wanted to create securities to sell, and the way to do it was making more and more irresponsible mortgages. Create an environment of spend, spend and spend some more and convince homeowners out there to continually refinance their overvalued properties, taking equity out and artificially infusing money back into our economy by spending money that they really shouldn’t have.

    Our economic philosophy since 9/11, in hopes of trying to avoid a recession, has been keep on spending. We will give you tax cuts to keep spending. The economy was artificially boosted by the mortgage industry and now those chickens are coming home to roost. Though acknowledging that the bubble was about to burst these past 2 years, and values on home starting to finally stagnate or even decrease after foreclosures started to rack up, companies were still offering up high risk mortgages to keep the books looking good for the stockholders and investors, as well as continuing to pool these mortgages together into securities to sell.

    If it makes you feel good, go ahead and blame Democrats for this. I wouldn’t expect anything less from someone who is copying the views of one Ms. Coulter. Just don’t call yourself Common Sense, for fuck’s sake!

  5. i am a diehard republican, daughter of a vietnam veteran, who i am very proud of. Because of him, i have been graciously accepted among many men like him, those who fought in wars and saw unspeakable things. Those who would do it again, in order for me to have this freedom of speech that i am intent on using at this moment. Men of courage, and men who truly believed in this country enough to volunteer to die for it. I am angry too. I am angry to have a country full of people from all parties passing the buck to somebody else to either take blame for, or make it better. The TRUE COMMON SENSE APPROACH IS THIS..
    if you dont like it, then you have a couple choices.. leave it.. or fight for it. And, by fight for it i mean change whats wrong to make it better for our kids. Think about the way you run your home, if you dont have enough money to pay for it.. you either buget to get it, or you borrow to get it, or you do without it until you can afford it. Simple logic really. But , the president does not, and will not even if its your party or not your party who is elected, have the power to simply make this crisis go away. And, it is a crisis. I have family members who lived through the great depression. The stories , if you dont know anyone, should be heard. Maybe if we played those stories to our lawmakers they would make good decisions for our sake. Maybe not. But if they dont , then vote them out . Those 545 people who control our most important decisions are ultimately responsible to account to us. Dont like ’em? VOTE THEM OUT. Think one person cant make a difference? WRONG. RALLY SUPPORT FOR YOUR CAUSE. But .. if we dont do something, we ain’t gonna like the ending.

  6. […] Rebuke of McCain’s Leadership, House Rejects $700 Billion Federal Bailout (Politicus USA) / […]

  7. John McCain has sure been doing a job of chewing on his own feet. Two weeks ago in Florida…the economy is doing fine and is strong….than last week happened (everyone with a brain knew it was coming for the past couple of years)…than yesterday he’s in Ohio taking credit for passing this bail out? Ha Ha Mr.McCain…didn’t your mother ever tell you to think before you speak? It wasn’t passed yet…you are making yourself look like a senile old man. Do you want to win this election? Maybe you should start concentrating on the TRUTH as it is instead of the Truth as you would like it to be….maybe than you’ll start going up in the polls again.

  8. They shouldn’t have had to…and they are too smart for that. This is not a party issue. It was the ultra conservative republicans and the ultra liberal democrats who were against this bill…and they had their reasons. You can’t blame this on either party…there are things in life where people need to work TOGETHER…this is one of them.

  9. Jason Easley who posted this blog on Politicususa must be a Democrate so please get all of the facts before pointing a finger.

    The majority of Americans let it be loudly known that they were not for the bailout. Therefore, House members who voted against the bill were respecting the wishes of the people in their districts.

    THE MAJORITY DEMOCRATE HOUSE DID NOT NEED THE REPUBLICAN VOTES TO PASS THE BAILOUT BILL. IT DIDN’T PASS BECAUSE MANY OF THE DEMOCRATES VOTED AGAINST IT. SO QUIT BLAMING THE REPUBLICANS AND McCAIN AND START LOOKING AT PELOSI, REID AND OBAMA.

  10. It seems that our congressional reps missed an opportunity to take a page from their colleagues in Chile. When those legislators ran into a similar situation, several years ago, they adopted a bail-out plan that: 1.) froze all executive bonus payments and 2.) dividend payments were frozen until the loans were paid back.

    This plan worked because the same greed that got that country into its financial mess was used to get it out. If you stop the rewards, the behavior will change.

    I think the reason the country is against the bail-out, as presented, is that we do not want those who created the pain to get any gain. So I recommend that the congress pay attention to those very smart legislators in Chile.

  11. jbaragona who posted this must also be a liberal elite democrate because he’s either too dumb to know, or he’s pretending he doesn’t know what a democrate is…

    a democrate is a big ass box (or crate) that is used solely for the purposes of a demonstration (or demo).

    therefore, a democrate.

    now, how the hell a democrate is supposed to vote is beyond me. it doesn’t even have fingers.

    or a brain…just like “mr. anonymous” who posted the original idiotic comment about jason easley.

  12. most ridiculous item ..failure was nancy pelosi . 98 demos 40% voted against including 12 members of hypocrite barney franks house banking committee

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