"Bail out" Bill passes first hurdle, goes to the house

Hurdle one passed, now let’s see if it makes it out of the House.
Senate endorses bailout as economy stutters (Via Reuters):

The Senate endorsed a revised $700 billion plan to tackle a financial crisis that has shaken world markets and drawn warnings of approaching economic catastrophe.

The plan now faces a final hurdle in the House of Representatives, which rocked global markets this week by rejecting an earlier version. President George W. Bush, speaking after Wednesday night’s 74-25 Senate vote, called the bailout “essential to the financial security of every American”.

Personally, I expect the bill to pass the House. Because Democrats and Republicans both agree that this thing is needed, badly.  What I do expect to continue to see is a resistance amongst fiscal conservatives amongst the grass roots. Not that I think that there’s anything wrong with it. Because personally, like I’ve said on here before. I am just not that thrilled with the idea of our banking system being nationalized. However, from a middle class stand point and from the standpoint of someone who lives in a state where unemployment is higher than the rest of the country. I think allowing our economy to grind to a halt is just not a smart idea.

More on the House part:

Leaders in the U.S. House of Representatives expressed cautious optimism that the legislation would be approved.

Senate leaders hope that sweetening the plan with a tax cut and extended federal protection for bank deposits can turn “no” voters into supporters. On Monday, the House rejected the previous version of the plan by a 228-205 vote.

“It’s still uncertain. I think it is likelier to pass than before,” House Financial Services Committee Chairman Barney Frank said in an interview on CNN.

“The main change is reality. I think that it’s not possible now to scoff at the predictions of doom if we don’t do anything,” the Massachusetts Democrat added.

Many Americans resent the idea that Wall Street is being “bailed out” at taxpayer expense, and have made their views clear in emails and calls to Washington, putting pressure in particular on vulnerable members of the House.

Thus exposing why the house members are gun shy on voting for this bill:

All 435 House seats will be contested in the election on November 4, as opposed to 35 seats up for grabs in the Senate

While they may want to save the country, they also want to keep those cushy senate jobs too.

Overall, it should be an interesting vote. One that I shall follow here on this Blog.

Full coverage on this bill can be found on Memeorandum

Technorati Tags: Congress, Housing Crisis, Opinion, Politics, Wall Street Crisis