NO! House Rejects Bailout Bill
In spite of desperate pleas by Democrat Barney Frank and House Minority Leader John Boehner – to say nothing of a morning appeal by President Bush himself – the U.S. House of Representative voted against the compromise Wall Street bailout bill, killing Wall Street’s hopes that a bailout package would be approved early this week.
The measure needed 218 “Yea” votes to pass. And although the Democrats attempted to keep the voting open for long enough to sway some House memebers, when the gavel was struck, the final tally was 228-205 against the bailout package.
Just before the number of “Nay” votes began to overtake the “Yea” votes, the markets – which had been under pressure all morning – began to sell off in earnest, with the Dow sliding by more than 700 points at one moment as the early vote tally came in.
The Volatility Index, or VIX, spiked on the news, climbing to more than 40 and becoming extremely stretched above its 10-day moving average.
Be sure to stay with TradingMarkets.com for our Stock Market Recap for more coverage of the bailout plan in the wake of the House vote.
And if you want to know which stocks will be most affected by the House’s rejection of the compromise bailout package, then check back at TradingMarkets.com just before the close to find out the 7 Stocks – and the 7 ETFs – You Need to Know to for Tuesday!