US House: No Thank You Rescue Plan

In a day riddled with speculation on the outcome to be, partisanship took its foothold. The day began with House leaders assuring markets that the House would ultimately pass the $700B bailout. As far as the markets were concerned, today was to be welcomed as a new beginning.

However, by early afternoon doubts crept in. In what was a departure from Congressional assurances, US Minority Rep Boehner put the passage of the bill in 'doubt'. A somewhat shocking proclamation given the comments from Majority leader Hoyer earlier in the morning practically guaranteeing the necessary votes for passage.

Numerous rationale for the rejection of the bill had been put forth in recent days from Representatives on both sides of the aisle, from 'saving Wall St fat cats' to an unnecessary burden upon Main Street. This was so vividly portrayed by some leaders in their testimony today, some near tears as they simultaneously apologized to the American people for forcing upon them this 'expensive' bill, whilst calling upon their legislative brethren for passage for the sake of the economy.

In the end, some legislators who have noted that there is plenty of 'time', and that the bill should not be rushed will have their chance to go back to the table when the House reconvenes on Thursday. They must once again evaluate the 'burden' upon the American taxpayer as the enormity of $700B sets in; some lawmakers this morning still claiming that this bill will cost 'each family thousands of dollars'. Yet there is one piece of math that should be ingested after hours. Which is more? The $700B bailout? Or the estimated $1 Trillion lost in equities market cap in the hours after the failed bill passage?

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