HR3997 Bailout Vote fails

The HR3997 Bailout bill failed the House this afternoon.  As a result the market tanked and is down over 700 points after the news. It was falling anyway, but this news pushed it down. We already have a credit crunch and now we have lost billions of dollars of Market Cap with this news. Many people are opposed to this Bailout bill and have been calling their congressmen and letting them know. This was likely the reason the votes did not exist to pass HR3997.

I’m not sure the majority of the people realize what is at stake here. Now I’m not rich, I’m far from it, but on some levels this Bill makes a lot of sense. Do I think these companies who made bad loans deserve a free ride. No I do not, but there are much bigger issues. If Billions of dollars keep disappearing out of the stock market like it did today then we are headed for bad times. This money that is passed around Wall Street everyday powers our economy. Many people think these are just rich people playing house, but the stock price means a lot about what companies can borrow and allows that money to be available. Without the ability of companies to draw on credit lines can determine whether these companies can continue to operate. If production  fails then this 6% un-employment rate is going to look like full employment and we will see millions of Americans lose their jobs.

The failure of HR3997 may mean the begining of a lot worse times for the country and the World Economy.

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