Wall Street Bailout Bill Fails and Wall Street Tumbles

The $700 Billion Bailout Bill Fails and Wall Street Has Record Fall.

Today Congress voted on the President’s $700 billion Wall Street bailout bill. It was supposed to help stabilize the economy and calm investor’s anxieties over the banking crisis. The bill failed to pass. Over 60% of Republicans voted no to the bill. No Both Democrats and Republicans are blaming each other for the failure. The republicans blame Nancy Pelosi’s partisan speech for them turning against the plan. Democrats say that Republicans didn’t support a plan created by the leaders of their own party.

One of the biggest obstacles for this bill, Democrats were afraid that if they voted for this bill, and Republicans turned against it, that Republicans would use it against Democrats in the November elections. It may appear that Democrats had reason to worry. But a new problem has popped up just as Congress prepared to vote today. Wall Street took a huge dive.

The Dow dropped down to -777 points, the largest point drop in history. The markets started to drop before the vote and continued afterwards. Only making today’s failure to pass the bailout that much more bitter. Washington politicians are going to have to regroup and agree on something. The situation is getting worst.

Today it was announced that Wachovia would sell its banking services to Citigroup. Wachovia was saved from collapse because if its large interest in real estate by Citigroup. Citigroup will pay more than $2 billion for Wachovia’s banking operations. The deal was made just hours before Congress was to vote on the Wall Street bailout. What’s going to happen next? Will another major financial institution collapse?

With our markets on life support right now, our country is particularly vulnerable right now. If we are not careful and stay on top of what is happening on Wall Street, I fear that if there were any type of terrorist attack even on a small scale, it could mean disaster for the country. The finger pointing on Capital Hill needs to stop, and lawmakers need to get back to the table and find a way to help the country’s financial system before it’s too late to anything.

See how Congress voted on the failed bill