Bailout Bill Rejected

The U.S. House of Representatives rejected the bipartisan Emergency Economic Stabilization Act of 2008 by a 228-205 vote on September 29, 2008. In the days prior to the vote, Democratic and Republican leaders of the House and Senate expressed confidence that the $700 billion rescue plan would pass the House and Senate. On news that the bill was rejected, the Dow Jones Industrial Average dropped 705 points, although it later gained back some ground.The New York Times: Stocks Plunge as House Rejects Bailout (September 29, 2008)

On September 30, 2008, President Bush addressed the nation in a press conference at the White House. He appealed to the general public and Congress to support the bill saying that the "consequences will grow worse each day" if action was not taken.Forbes.com: Can Bush Get His Bailout Done? (September 30, 2008)

1. Provides up to $700 billion for the Secretary of the Treasury to buy mortgages and other assetsMarket Watch: Text of economic rescue bill official summary (September 28, 2008)
2. Raises the American debt ceiling from $10 trillion to $11.3 trillionChicago Sun Times: Bailout bill "Emergency Economic Stabilization Act of 2008" searchable summary. (September 28, 2008)
3. Establishes a program to allow companies to insure those assetsMarket Watch: Text of economic rescue bill official summary (September 28, 2008)