Can someone please explain to me how the central bank "pump billions into the system" what does this mean and how does it work???

Sara, Manchester, UK

In April, the concern about sub-prime was just beginning and the New York Times published an article about research from Cambridge that recommended that mature men and women be more widely deployed on the trading floor to counteract the young hotheads that were creating this problem. Well?

Ed, Cardiff,

Those who voted against this bailout are champions of liberty. The advocates of this bailout are using nothing but scare mongering to wrestle more liberty away from the public for the benefit of big government and Wall Street. Supporters should be ashamed of themselves!

Ryan, Jacksonville, United States

When you take a risk, you might lose. I am not responsible for a loser in Vegas, and I will not be held responsible for a loser on Wall Street. If they tank our economy, they should be prosecuted. I now believe these banks would artificially cause economic problems to get their way in congress.

Richie LaMontre, Ft Worth, USA

To those people calling for a boycott of the bailout, based purely on (understandable) anger towards the so-called "fat-cats"....if these banks fail, the resulting economic fallout, job losses,lessc ompetitive consumer lending etc, will not impact said fat-cats...it will impact Joe Public

Alex, Cardiff, Wales

The Republican pipsqueak representatives who voted against this for their own political safety-of-the-moment will be remembered in the history books as the idiots who continued the mauling of the world economy beyond the point where it should have been rescued. They should all be flogged.

Jim Houghton, Los Angeles, CA, USA

Don't worry Brits, we Americans aren't only ignorant of other countries histories. We are ignorant of our own history as well...

Rob, New Orleans, USA

Failure to pass the bill can't throw the U.S. into recession. By reasonable measures, it has been in recesssion for months. The crash of 1929 turned into a depression because the Roosevelt administration's actions shattered business confidence. Five years later, by 1937, the depression was worse.

Walter Donway, East Hampton, United States

Good luck getting that car loan/house loan/paying for your groceries on your credit card middle America....this crisis started on main street, by too many people being over-leveraged and not being able to meet their basic financial obligations. It's not a Wall St bailout, it's for the whole economy.

andy c, NY, USA

Should we have "free" markets or not? Manipulation just prolongs the agony. Japan is still suffering from its recession which started 18 years ago because they interfered like the Americans are trying to do now. And anyone who knows the markets must realize that $700 billion is a drop in the ocean.

Bill Jencks, San Fernando, Philippines

If capitalism is to exist, it, not the American taxpayer, must correct itself. Has anyone asked themselves why the billionaire owners, such as Buffett have not used their own billions to bail out their company's? Billionaires who made their money from the system are the one's who need to buck it up

elizabeth miell, houston, usa

why should there be bail outs? the banks have failed. the Fed has failed. American tax payers do not wish to bail them out with our tax money when we are already feeling the crunch from this big bubble economy and high inflation. would you?

Jack Sassy, New York City,

Bailout or not a recession is inevitable anyway. Both USA and UK have been running their economies on massive amounts of debt. This had to end badly. No way out of it.

chris, brighton, england

Something certainly must be done; however, I very much doubt that handing a trillion dollars (in round numbers) to a notorious gang of criminals and scofflaws without review, oversight, or liability is anything like the thing that must be done. Smelling rats here. LOTS of rats.

Steven Kite, Terlingua, USA

Immediate Bail Out is required!

When your ship sinks, it needs a bucket to bail it out... otherwise all 'Hands on Deck'. go down with the ship.

Mark, London, UK

It is clear that something needs to be done ASAP, but there is a need for more information. Why don't we have public debates (CNN, FOX...) with people that have a good understanding of economy? No election propaganda....

Anne, LA, USA

No Bail out, the banks as businesses have failed. The money has been lost through bad decisions and fat-cat salarys. Everyone who makes an investment knows there is the possibility of loosing it this has been on the cards for years but still people borrowed.Time to pay the piper!

Tim Lawrence, Mackay, Australia

Erin from New Orleans. The USA has never, i say again, never saved Englands butt. The USA has always stepped in when it best suits the USA. I am not anti-American i support you guys however you have a distorted historical veiw

Luke, Port Macquarie, Australia

For folks here who think that the US President is responsible for the current crisis (as opposed to say the US congress) should really be very specific about what exactly they think was done by the US president to sour the economy.....
Else your one line comments are pointless...

jamal Hussien, Portland, USA

I have liquidated my IRA's, my childrens college funds and I am heavily investing in C-Rations, canned food, weapons and ammunition, ammunition reloading equipment. solar cells, ham/two way radios. We have 30 acres of land an irrigation source and farm equipment. I say let the whole thing burn.

El Griton, South Texas, USA

Can someone tell me this. If the whole system is based on growth what happens when the system has little room to grow or the system has finally matured? It's infesible to think that something can grow forever. . . right?

Matt, St. Louis, USA

How does Dave from Derry do math? If half the people in the U.S are over 18 that's 150 million people and when I divide 700 billion by 150 million I only get $4666.66 each. Where the heck does 150 grand each come from?

Steve, Phoenix,

There's no comparing Congress' vote against the current bail-out plan with the Smoot-Hawley Tariff Act. We are not talking about raising tariffs. people are concerned about regulating bankers who take high risks on the credit market and curtailing greed, none of which the bail-out plan addressed.

Jodi Frank, Saratoga Springs, USA

I have some advice for the two presidential candidates, and for all candidates running is the coming elections:
Stand up and denounce the Bush/Paulson bankers' dictatorship bailout scheme.

Robin Chase, Tucson, USA

I am going to find out WHO voted FOR the bailout and verify if they are running again for office. If they are running, I will do everything in my power circle to make sure they do not regain their seat in office.

Norma, Fallbrook, USA

good good good. seems like the real ones that are not bipartison are the ones who voted against this bailout for the rich. they represent what the majority want. bravo!

Gary, Sunbury, USA

Nancy Pelosi is a master! Her speech just before the vote absolved any of her fellow democrats who voted for the bill of guilt, and laid the blame squarely on the Bush Republicans, who then chickened out. She showed the same superb tactics three years ago when Bush tried to raid social security.

Byers, SF, USA

I feel the House has made the right decision today. These companies have made bad business decisions and if small business did the same no one would be there to bail them out.

Let's keep in mind the amounts of money paid out to those key executives who have made the bad decisions.

Darlene Shotts, Concord, NC, usa

You right wingers should be ashamed. You asked for deregulation and you got it. This time don't bring the world's economy with you.

John, Kansas, United States

When did I last hear "BUY GOLD" ?
I'm bookng my dental appointment in the morning....

Don Gill, Wiltshire, England

Looks like a good bipartisan decision to not waste tax payers' money, IMHO.

Ian, New Orleans, USA

I find it interesting that the cost of "fixing" this situation is about the same as the cost of "fixing" Iraq. It's also about the same as it would take to "fix" the crumbling infrastructure within the US...

Brian W., Los Angeles, US

David of London,

Fannie and Freddie are bastions of Democratic patronage. The Dems have prevented adequate regulation of these quasi-gov. institutions for years. That is where this crisis started.

Charles, Chicago, USA

The good news - within 2 weeks we will know the direction of the economyt. The bad news - in my opinion, the credit market will freeze, people will loose their jobs, and the economy will slow down to 70's levels; and, boomers will postpone retirement causing hiring to slow.

Dan, Annandale, USA

The Bailout Plan started out as the Paulson Bernanke Bush Plan. This plan became the Pulosi Barney Dodd Paulson Bernanke Bush Plan.

The gist of each Plan: Spend more dollars, Print more dollars, Borrow more dollars, and tax more dollars.

The plans failed because they were both poor plans.

Marko, Dubai, UAE

Ignorant peasant that I am, it seems to me that the bailout can be acheived in more than one way. How about forgiving $1trillion of individual home owner mortgages?

Peter Wood, Langley, B.C., Canada

It isdifficult for a common man of mass to understand why ther is attempt to avoid crash of equity market. Investor should not expect always to earn on highly priced shares of company. If prices of equity shares come down then many such common "man" would get chance to enter into market and benifite

shashi valiyani, Mumbai, India

Part of the problem is down to the SEC and the UK equivalent not cracking down on irresponsibleness. So maybe the governments should let market forces destroy those who've abused the system...or maybe this will end up coming back to haunt more than just the finance sector, as we're all dependent.

Ana, Lytham, UK

Big government = ENEMY of prosperity. House republicans and some democrats voted for prosperity instead of an economy of writing checks to each other. It wasn't just people forfeiting on mortgages - it was whole states and cities too all drinking from the same poisoned trough of 'cheap money'.

Mike M, Boston, MA, USA

Again I keep reading anti-Wall St. statements about teaching them a lesson. Can people not see that without this intervention, this downturn will cost local jobs, affect pensions, make mortgages unaffordable, damage consumer spending, etc.

Storm has left Wall St. and slowly moving towards Main St

Will, London,

Not for the first time, the US Congress has taken a fateful step towards driving the world over the cliff
Gerard Baker

Two other events come to mind after reading that silly quote: The Boston Tea Party & back in the 1940s when we (America) saved Britains butt.

Erin, New Orleans, USA

'Back to the Gold Standard?!

John Gault, Melbourne, Australia'

Brilliant idea but unfortunately 'Charlie' Brown sold ours at rock-bottom prices when he was chancellor. Another fine mess.......

Phil Mann, Newcastle upon Tyne,

"House votes no on bailout, Market loses 1.2 trillion". These are the idiotic headlines we will be spoon-fed by the media. Have any of you actually read this flawed and ineffective bill?

Steven, Colorado, USA

It is obvious that they (the banks) made this problem - But as we are all linked to these institutions we will all be affected. So letting the banks drown solves nothing (part from cutting of your nose to spite your face). Fix the problem, jail the directors of these banks. Move on. Or dig in your heals and herald the 1930's.

Stephen H, London, UK

As the owner of a small business established for 7 years we couldn't get our bank to increase our overdraft even though we had an order book in excess of £3million unless we put our home up as collatoral. According to our account manager banks do not view orders as security...... maybe they should

Julie Dale, Stone,

i agree that this ibailout is a painful and unpopular event, but the fact is that it has to happen so enough already of the posturing in politics. they reps need to get this done!

nancy, cape may,

Surely Palin has the answer

ben trovato , cape town ,

The people of the USA are right. The banks still have the assests so make a use of them. Rent them back to the people who where re-possessed in the first place. But then banks aren't in the business of social housing or social anything. The quick fix is cheaper and far quicker for the executives.

karl, Leeds, UK

Michael you were close , simply extend the motgage period to say 40 years from 25 and reduce everyone's costs in the short term and when things recover look at it again ...no forced sales , people can afford to live the bansk have there assets intacked , they should have done this weeks ago...

andy, chalfont, england

So this is all the banks' fault, is it?

Remember the root cause: BAD DEBT - i.e. IRRESPONSIBLE LOANS.

For every irresponsible loan, there is an IRRESPONSIBLE BORROWER as well as an irresponsible lender.

Jon Leigh, Southern, France

We need this correction. Better to get it out of the way quickly, than delay for the next few years. The market needs to know who really has cash, and who doesn't. Too many Americans have too much credit, period.

Robert, Fairfax, Virginia, USA

The real reason not to support such extreme government intervention is not that it might not acheive its short-term objective, or that it might make wealthy bankers more wealthy, but that, in the long-term, such interventions always do more harm than good.

James E. Petts, Burnham, England

Again I keep reading statements saying the fed required the bank to make mortgages to lower income people. It was not "required" a bank makes mortgages to whom it chooses. The risk is entirely the banks. A bank can turn down a loan to whomever it likes. Greed was the key to it all.

Kenton Potila, Ishpeming, USA

let the banks fail and crumble, these profit hungry powerhouses need to be taught a lesson in risk management. The overborrowing public needs to be taught. It is long overdue and out of the ashes shall rise the banks who are truly worth investing in, the ones who keep your money safe

Liam B, Aberdeen, UK

Where is the consensus and leadership from the senior figures in the financial 'industry' when confidence in their competence is required? There has been no collective statement or stragey, just continued gambling causing the markets to be further convulsed.

Steve Randle, Warwick, UK

The blame for this lies squarely on the shoulders of the banks which gave the loans, blaming Clinton or the Democrats or the Republicans is stupid. They may have given the banks the opportunity to make bad loans, but did not twist the bankers arms to make them. The banks saw easy money and took it.

Kenton Potila, Ishpeming, USA

What happened in the thirties and is happening today was not financial. It was, and is, organic. The people, all of us, are just a large organic mass. Everybody now knows the party is well and truly over and so It hardly matters what anyone says or does, the end result remains essentially the same.

Chris Norman, Paraparaumu, New Zealand

Surely the point of markets is that there are winners and losers. The rich bankers are losing? Tough.
And by the way- give us back all the money you stole in bonuses

Dave Clemo, Kettering,

Just foreclose on the mortgages, transfer ownership without write downs and rent them to the present inhabitants. Cash flows, of a sort are restored, take the value hit over some future period and stabilty of a sort is restored, Oh, and stop stock lendingand thus betting against yourself.

Michael Gailer, Woking, UK

How can the Americans be so naive? This bailout is not just about helping Wall Street, it's helping the whole of the country! This affects employed Americans with mortgages, loans, debts - everyone! Will they only realise this when their own local jobs and livelihood is at stake?! Wake up USA!

Will, London,

The bill would have cost taxpayers up to 750billion, it was deeply flawed.
The market reaction to its non-passage has cost 80% more than this already, in less than 24 hours. Plus the problem remains to be addressed.
I hated the notion of such a bill, the failure to pass it has made things worse

John Wood, Uxbridge, UK

Why is the entire intelligentsia outside of the United States so fervently in support of this preposterous Bailout proposal. Several Nobel prize winning economists have come out against it. Not to mention that its totally against the spirit of America and our founding.

John Sparsky, Washington, DC, USA

I am glad that the bail-out did not pass today. US banks and mortgage companies must be responsible for the bad loans they made. Many of the properties in question are worthless. No one else, including individuals, the US gov. or the rest of the world should have to pay for their bad investments.

John Boyd, Waterford,

What I want our friends across the Atlantic to realize is that we're not "stupid" and we're not "immobilized". We know exactly what's going on; we know exactly what's at stake; and we choose freedom over an easy fix. The American voter killed this deal, nobody else.

Lou Filliger, Woodland Hills, CA, USA

Today, the Constitution of the United States was upheld by our House of Representives. God bless the USA!!!!!! Wall Street can go to hell.

Nick , Los Angeles, CA

The bailout bill was doomed. Democrats didn't want it. they could have passed it with their House majority, but they chose to kill it. Why? Because telephone call, faxes and emails from their voters have been running 10 to 1 against the bailout.

Patrick C., Orange County, USA

The U.S. will be in a far bigger mess if she continues to allow Democrats to prevail with their spurious and deceitful statements and financials deals - as well as Barack Obama as President!
Then she will go down and drag much of the world with her.

Irene Faulkes, Hervey Bay, Australia

Don't bail them out--let them burn. This will shake itself out without taxpayers having to pay for it. NO BAILOUT!! The banks have the houses they loaned the money against, they can rent them out or sell them, and vote against ALL incumbents. Enough is enough!

Teri Davis Newman, Highland, USA

Ann, CA and JS, Chicago -But it was the Bush Administration, who actually lit the fire on this one. During his term, with Greenspan(btw is also Republican), interests rates lowered, and with the GOP controlling both houses of Congress that time, much more of the deregulation took place.

Ann, Pasadena,

Back to the Gold Standard?!

John Gault, Melbourne, Australia

But it was the Bush Administration, who actually lit the fire on this one. During his term, with Greenspan(btw is also Republican), interests rates lowered, and with the GOP controlling both houses of Congress that time(6 years worth of the housing bubble), much more of the deregulation took place.

Ann, Pasadena,

Tthe comments from some US posters here are really excellent. I think the whole "Paulsen Plan" saga is a joke. One thing is clear to me: the USA will weather this storm, whatever the hits on Wall St., once the huge capital managers there agree the bottom's hit and buy again (in about a month!).

Jono, Carmarthen,

The top execs of Fannie and Freddie were not Democrats, there was a predominance of Republicans. John McCain's chief Economic advisory currently has a $160,000 year part time consultancy with Fannie.
Fannie & Fredies losses are not a fraction of the large Wall Stree banks and their Republican allies

James, Bethesda, MD,

Mike, Lewiston, ME, USA -Anyone who thinks this is Bush's fault is an idiot.
Yeah, it's actually Greenspan's fault, your fellow Republican!
BTW-Isn't Carly Fiorina Mccain's economic advisor also, who almost ruined HP, layed many people off, and still got millions of dollars in severance!

Ann, Pasadena,

OK, Finally, right or wrong the U.S. Goverment has listened to the will of the people. Thank you all that voted no. To heck with them, let them take all the money they have made over the last 5 years and bail themselves out

Peter Derener, Hemet, CA, USA

A) Anyone who thinks this is Bush's fault is an idiot.

B) McCain had 2005 Bill to regulate Fannie/Freddie and warned exactly this WOULD HAPPEN. Likewise Bush!

C) Obama was among largest recipents ($100k+) of contributions from Fannie/Freddie, his Econ. Advisor is former CEO of Fannie?

HELLO

Mike, Lewiston, ME, USA

The fundamentals of the Constitution and American Capitalism are being ignored if ANY bailout is passed. A business, no matter how large, is subject to the same consequences as small business. Suck it up Wall Street, America and our representatives have spoken on our behalf. I truly applaud them.

Ben McDonald, Noblesville, United States

This is high stakes poker game where both sides are calling each others' bluffs but ultimately I believe the bill, somehwat modified, will be passed by Thursday "at the wire". Meanwhile the stock market needs one more panic blow off before canny investors start buying again.

Anthony Wolff, Mallorca, Spain

June 2007 we were re-mortgaging and C&G - part of the cautious bank that 'rescued' HSBC - suggested that we could take out a mortgage of 6/6.5 times our joint salary. Thankfully,we are didn't feel the need to take them up on their kind offer....But what about those that did? more pain to come..

Caroline Parker, London, England

Expanding the money supply will just devalue the world currencies even more. More supply = less value. This is a very bad mood. We are being plummeted into third world-level debt right now.

Neil, Surrey, England

For a fairly large percentage of Americans, today's events mean nothing. They have no 401K, IRA, savings nor a bright economic future. They return home from dead end jobs to a rental shack. They never share in the wealth and work jobs that make Wall Street cringe. Elites never understand this.

Rick, Upstate New York, USA

Hey David (London), You need to do some serious reading! 95 dems voted in the House AGAINST the bailout. Furthermore, all of the past executives of Fannie and Fredie were top democrats. Under the auspices of mortgages to the poor, the dems protected an institution that funneled funds back to them

Joseph Ndiaye, Atlanta, USA

This is democracy in action. The representatives are listening to the people who voted them in. Why should the American taxpayer be robbed to bailout the mess caused by a greedy clique of Wall Street parasites and international bankers ? Let them drown.

Anthony, Charleston, WV, USA

I'm glad you in the UK understand just where this fiasco started. Back in the '90s when the country started being enlightened, ACLU and ACORN challenged the banking industry in court over 'red lining'. in '05&'06 McCain brought bills that would have forced more regulations, but dems defeated both.

Emma, Cannondale, Connecticut, USA

The Democrats control the House and could not get their members to vote for this. Why? They are afraid of the inventigations. Have a look....Shocking but true.

http://www.breitbart.tv/?p=184743

Chris, Houston, USA

If the UK likes what happened today , just wait until democrats win the presidency. Democrats lead all the committees that encouraged high risk loans that created this crisis. They also barred any form of regulation of the industry as president clinton himself stated in last weeks interview. USA@!

michael, obamaville, USA

This is not the result of subprime loans. It is the result of deregulation of the credit derivatives market -- what allowed everyone to invest in the loans (a.k.a. the "Enron Loophole"). That was a bill that passed in Dec. 2000 -- a Phil Gramm bill, after Bush was elected and Clinton a lame duck.

Ana, Atlanta, USA

We the U.S. taxpayers said no, by a 10-1 margin to any BAIL OUT. Congress agreed and said NO.

But I read that Bush and Pelosi had implored the lawmakers to pass the legislation DESPITE LOUD PROTESTS from their Constituents back home. Really? Hit the bricks FAT CATS, we will survive.

Ron Brueske, Canyon Lake, Texas, U.S.A.

When the rules of a game get too one-sided, they must be changed.
High salaries are only one result, the rules must be improved to be fairer to all! Let the high-rollers pay their own tabs and not suddenly come whining to be bailed out by the government. This is after all the market-place, no?

Louis Spritzer, hudson Heights, Que, Canada

Well, Im not gleeful that you folks across the pond are losing some money because of whats going on here, but at the same time, I cant help but be ecstatic that the house rejected the bailout plan. It may hurt us in the short term, but long term, we need to see those giants crash and burn.

shane, springfield, il, usa

David from London, you're dead wrong. Republicans in 2003 and 2007 tried to put greater regulations on Fannie/Freddie, but both were killed by Democrats. The Clinton administration changed regulatory policy to force lenders into the subprime market. Wall St. then securitized them, and Presto!

JS, Chicago, IL, USA

David, London - The Freddie Mac and Fannie Mae debacle was the darling of the Clinton admin. McCain tried to reform FM/FM, and was blocked by the Dems . Obama received over $126K in FM/FM handouts. Don't let anti-American snobbery get in the way of the facts.

ann, CA, USA

Fro once members of congress actually listened to their constituents. All this is, is a short term bandage for a huge problem. They would much rather see the taxpayers fix the root of the problem - fixing all the bad loans and bad debt, so the banks aren't in their predicament in the first place.

Ray, Worcester, MA, USA

The overwhelming majority of Americans DO NOT want this bailout to go through. Its bad for OUR free market system. Let the businesses fall on their own. I'd rather go through a depression than compromise my capitalistic core principles. Socialism is not America's future.

Andrew, Kentucky, USA

Now, if Obama wins, he will begin as a Lame Duck President, for he has, and is still, trying to betray us all and serve the Rockefellers, Rothschilds, and other families which own the Federal Reserve. I intend next to vote against every one who voted for this Bailout. Next we Close the Fed!

victor compton, Cherbourg, France

They were the lucky ones - they were allowed to have their elected representatives get together,debate the issue and vote on it.
Our electorate was given the "Mugabe" treatment.
Scandalous.

james allen, manchester, england

Bad Laws are still on the books, Banks and Insurance have provide loans to those who cannot afford them. Banks are punished if they don't. Bad paper is sold to the world market. Greed and bad policy from the 1990's have created this mess, lets wait it out until we reach bottom. It maybe painful.

John Carey, Castro Valley,CA, USA

I think that congress finally came to their senses and said NO to the ridiculous Bailout proposal. Throwing good money after bad makes no sense. It seems like the central banks are doing what needs to be done. The markets are correcting themselves.

Dave, Sunnyvale, USA

What's wrong with Gordon Brown. He never did understand basic housekeeping. He flies over to his mate Bush to be assocaited with an outrageous plan to spend 700billion on rewarding failed bankers then back at home, he gives 20billion of B&B assetts to a Spanish bank for 600million.

Narni Livingstone, Brighton, UK

The Federal Reserve is to blame for promoting a decade of mal investments with interest rates that nearly went through the floor.

Fred Bernstein, rhinebeck, USA

Yes, well done rejecting it, but can advocates of the bailout not see that the enitre architecture US domestic economy is inextricably tied to the fortunes of banks and Wall St? A free market solution will simply see a collapse that wil hit 'Main St' even harder in the long term

Mark Perkins, Worcester Park, UK

But Brown and Darling went out there after the Labour party conference to resolve this situation ??? What happenned ?


Brown & Darling, the Laurel and Hardy of international finance...

R.McGeddon, London, England

First, Bush - two terms. Now, McCain-Palin. Is it any wonder the US is such a mess? Is it the water you're drinking?

And before someone rants about foreigners criticizing the US, remember: we also live with the fall-out but are stuck watching helplessly as you lurch from one stupidity to the next

Joanna Gordon, Toronto,

I am sorry Kate,
What a juvenile thing to say. Do you really think that special interests had nothing to do with the rejection of the bailout? What do our electoral college, or dissolution of people's organizations such as labor unions really say about "the power of the people." US = oligarchy

Tyler, Denver, USA

Paulson, formerly of Goldman-Sachs started this mess in the first place. Google Karl Denninger to understand why the key issue is not money, but trust.

The $700 Billion is what they can keep on their books at one time. If this had passed, Trillions of bad debt could have been washed through .

Rob, Cardiff, UK

Three cheers to the US congress for throwing out this bailout junk! The bankers corrupted sound money with their pyramid scams and casino games and must now pay the price. Any government intervention should be limited to the protection of ordinary depositors & the real economy. Wall St isnt Main St

Mr C, London, UK

Dems pushed lenders to make bad loans and Wall Street took advantage. Obama's adviser Raines walked away w/ 90 million from Fanny Mae as it's CEO. Fanny's campaign contribution recipients #1 Dodd(D) #2 Obama. Read Novaks' article on "Hank Paulson's DNA" to see the Treasury Dems.

Doc, Dayton, USA

The banking crisis frm the dilution of basic rules of economics, of the SEC oversight, the US Tort System, Anti Trust etc which all offered Checks and Balances against limitless greed, arrogance, bragging, lack of accountability, Standard Poor, Moody econotricks! FSA and UK banking fares far worse!

Johnson Thomas K, Milton Keynes, Buckinghamshire

The Chickens have finally come home to Roost.

Let's see what these Houdini Accountants are really holding in assets.

Burn baby, burn!

Rob, Cardiff, UK

Look, the banks can get rid of these "toxic assets" right now, by writing them off their books. Yes, they'll take a hit, but isn't the average American already taking a hit with inflation, rising energy costs, high health care costs and declining home prices? Nobody will bail them out.

lynne, Los Gatos, USA

The US needs to complete its elections before deciding this issue. They are too close. With (half) a new Congress and a new President, it will be easier to get things done. Meanwhile, the Bush legacy has already started!

Colin, Malaga, Spain

Hey DAVE, DERRY, NH, are you being ironic? If there are 100,000,000 individuals in the US older than 18 (and there are more than that), then 100,000,000 x $150,000 = $15,000,000,000,000. That is WAAAAAYYYY more than $700,000,000. It would appear that neither you nor Paul Hodes can multiply!

Paul Wilson, Vancouver, Canada

Despite historical events, the US is suffering not a lack of economic potential and activity, but is hindered by it's polical ventures and conflicts. This is why the U$D remains at a Fair Market Value.

Justin, London, Canada

This crash was in the making a long time ago. Now it is the rest of us that must shell out the $$$$$$$$$$.

Dave, Lehi, USA

Like it or not, the dollar is a safe-haven currrency. "De-coupling" is a myth.

Inspite of that, all bets are off now. We are in freefall enjoy the ride because the end will be bloody.

Andy, Wyoming, USA

The subprime crisis and the proposed banking bailout is the biggest scam ever. How can the ordinary innocent folks(decent taxpayers)foot the cost of this whole saga. It's a joke. History has again shown the wonder of financial world in privatising gain and socialising the lost(cost). Reject the plan

Djohan , Sydney, Australia

Looks like Barack's friends in the Congressional Black Caucus voted against. He seemed reluctant to give it unequivocal support himself, but that may be just his normal slipperiness Of course the mindless media will just 'blame' Republicans. It's an automatic reflex.

John B, Middlesbrough, UK

Without this measure the markets will continue to collapse and everyones jobs and savings are at risk, so its not just about saving bankers. This plan is what leadership is about. The right wing Republicans caused this crisis by bankrupting the USA by prosecuting war in Iraq.

Steven KB Katirai, Newcastle Upon Tyne,

Thank GOD this bail-out failed. The US Government does not belong in the loan business regardless of the circumstance. The government should be investigating and putting someone in jail overnight for this problem rather than handing out more money to the thieves as a reward for poor judgment.

Ron , Salisbury, USA

Rightly rejected. No idea why US citizens should adopt the risk, the bankers having already gouged the reward.
Leave the risk with the banks, provide fund facilities - at a cost - and watch the pips squeak.
Not gloating (or envious) of our US cousins; just want them to get it right.

Terence Park, Burnley,

If the US government is too "broke" to finance Medicare and Social Security, where is the money coming from to bailout Wall Street at the expense of the working population?

This latest attempt at robbing the populace simply shows who the current administration's paymasters really are.

Chris Kibbey, Sutton, UK

To Alano in Virginia,

The suspension of the "uptick" rule in 2007, which prevents shorts from hammering a stock, was one event that contributed to the collapse of financial stocks.

John, Midland Park,

It is time to hold those responsible for this mess accountable! There should be a full, Enron type investigation with sworn statements from the people that were in charge of Fannie Mae and Freddie Mack. Those that benefitted with bonuses and big paychecks should be exposed.

Jim Miller, Omena, USA

I think the investors themselves are to blame. Rather than stay put and encourage the lawmakers, they continue lawless bringing ruin unto themselves and those that would like the stock markets to stabilise. Request the profiteers to act more mature. Time to restore confidence.

Jagadish, Bromley, England

To: A, Palo Alto,CA, USA

Correction, yes the bill was passed in the '70s. However, unrelenting pressure built in the '90s to drastically expand the program, to the extent that nearly half of all mortgages were subprime. This ballooning of the % of loans tied to subprime is why it's so toxic.

mike, Dallas, USA

Yes, the world needs a crash after which things will be back to hard work and real values. Right now everyone is punch drunk on easy cash. It couldn't go on forever. There wasn't really anyone that thought it could was there? We need to flush this poison out of the system and start again.

John Morgan, Old Stratford, United Kingdom

This recession is necessary to reestablish a healthy and sustainable economy that is based in manufacturing and 21st century skills, not speculation and technocratic greed. The bailout, if even on a subconscious level, would have contributed to the continued surrendering of civil liberties.

Tyler, Denver, USA

Too many short sighted comments. Let us be sensible. confidence is all or else the future is quite unimaginable, then is the time to lay blame and learn lessons. Meantime we must make our financial systems work, however corruptible they have become. Please just learn and be all wiser.

hmcintosh, edinburgh, scotland

Hold steady now you nervous nillies. The ONLY thing that will send us into a real depression is if everyone freaks out and runs on the banks.

PS The dems insisted welfare and unemployment checks should qualify a loan. Obama was a top receiver of Fanny Mae "donations".

C. Parker, Seattle, USA

You have just witnessed the power of the people. You might like to try it sometime, dear cousins.
Kate, Maryland, USA

?? What's wrong with you? Why all the posturing? Most of us in the UK think it's great you have rejected this ridiculous plan. So why the patronising rudeness? Yet again.

James, London, UK

They voted the right way. Let the system collapse if it's going to (unlikely). It's seriously flawed anyway. 700 billion was never going to be enough, they would have been back for more in weeks.

Chris, Aspen, USA

I'm sorry but too many people have too much to say about things they know nothing about. If the regulations of America are at fault for the Mortgage problems than why are other countries faltering also? Could it be world wide energy costs are draining the wealth of the world?

Russ Prothero, Forsyth, USA

The George W Bush Presidency will ultimately be viewed as a cataclismic failure in both domestic and international policy.

You cannot implement windfall tax cuts while waging two wars! The ensuing deficits drain taxpaper capital towards interset payments on the deficit.

Adios Bush!!!

Michael, Las Vegas, Nevada, USA

When any game gets too one-sided we improve the rules. The high salaries are just the result of the game, it is the rules that need to be improved to make the game fairer to all! Let the gamblers pay their own tabs and not go whining to be bailed out by a, suddenly considered, helpful government.

Louis Spritzer, Hudson Heights, Que, Canada

The sooner the Republicans get out of the White House, the better - they were the ones who in 2005 encouraged the likes of Freddie Mac and Fannie Mae to increase their subprime lending, triggering global banks to take on more of these 'toxic' products. Now they're stopping the solution!!!

David, London, UK

I hope and think this decision will put the Republicans out of office for at least 2 terms.

leila , manchester, uk

So now they need a rescue package for the bailout package??
You couldn't make it up.

rick, newcastle, uK

I've heard it said the republicans are under political pressure from their electors to vote this bail out down. This was said as a criticism, but in fact it's democracy! The people don't want it, so it should fail.

andrew, swindon, uk

If we now have basically sound banks left, but a liquidity problem, why don't the authorities suspend the markets, stop share trading,carry out interbank lending through the central clearing banks, until liquidity is restored, and force a declaration of all dodgy assets. Then decide what to do!

Paul Freeman, London , England

The sub-prime/ Fannie Mae mess was the Democrat's handiwork from 1999. Pelosi is incapable of bi-partisanship and blew the deal.

Blaming the mess on Bush is grossly dishonest.

Patrick Henry, Bristol, UK

The bailout is simply not consistent with our american democtratic government. It seems to socialistic for us. People need to understand that. It wasn't about money but government control. Why rescue a bunch of banks who didn't manage their money properly? Can someone please explain to me why?

Frank, Pico Rivera, USA

This was not going to be a bailout of the fat-cats, too many people on "main street" have money in Wall Street and those people lost money today.

The only good news to come out of today is that this will help Barack Obama.

Logan, Huntington, West Virginia, USA

Hey the quicker the poorly managed companies get out of town the better for all in the world. The usa does not have the market on GREED and Corruption, there are Plenty of Rogues companies out there that need to be wiped out forever!

Allianz of Germany is FINE! The Northern Trust bank iS FINE!

JOHN C, CHICAGO, USA

I was contemplating how I could cash in on this situation...but alas I realized I have no money.

Bill, CT, USA

The republicans vote against it then blame it on democrats for being "partisan"? I think they need to look up what that word means.

kh, Boston, MA,

You have just witnessed the power of the people. You might like to try it sometime, dear cousins.

Yes, hard times are coming, but the bailout would have only delayed the inevitable. At least we managed to stop the nest feathering.

Kate, Maryland, USA

Just read the 'Shock Doctrine' and you will understand what Bush and his cronies is up to. Create chaos as in Iraq and then when everyone is in shock make a huge profit. Well done democracy.

G Davies, Cardiff, Wales

deregulation was a good thing. This did not cause this problem - creed did. You cannot make private companies and individual behave responsibly. Democrat or Republican, companies are companies and both went fast footing forward. The Salaries and bonuses paid out were outrageous.

dona, edinburgh, scotland

What Americans needs to do is read up on what happend before the 2nd world war in Germany. What was the climate of tihings leading up to that war. When you find the answer you will know where you have been going wrong. And where you are going, and know why you need to change direction. US is paying.

Daphne Kenward, Cambridge, UK

It is too late for all the Members of the Congress to remember the interests of the taxpayers. They watched for years the taxpayers being robbed by these bankgsters and now they are inflicting more pain by letting these banks fail. And who will suffer from the failure? The bankgsters or the taxpayer

Ilias, Bradford , United Kingdom

Idiotiotic way of selling the proposal/bill. Just say to those in congress... if you don't vote for this bill, then wave goodbye to your cash savings at your local bank and potentially your pension pots.

R, London,

The article points blame on the Republicans voting heavily against it, but the Democrats are have the majority in the House and Senate. They could have passed it without a single Republican yes vote.

Had they listened to the regulator assigned to Fannie and Freddie and '04, we wouldn't be here.

Anna, Seattle, USA

That's it, keep going Congress, reject it outright. Let's hope this isn't some Congress-power-game, with deal making going on in the background to serve personal political agendas, so that Congress gives in later in the week.

Reject it 100%. Not $7, $700b or more. Leave the market alone.

Laura Roberts, London, UK

Well I hope all of you anti-bailout bill people are happy now. I also hope you'll be happy when the world markets crash.

Dennis, Morristown, USA

This isn't exactly chaos. Lots of people bought stock with the expectation of a government handout. Now that they know there's no free money headed to stock holders, they're selling the stocks. Looks like standard, rational egoist behavior.

Joseph, New York City, USA

Remember, it was the Republicans who made this plan fail, though they wanted it to pass, so they could taint the Democrats with giving a handout to Wall Street fat cats, while rewarding their supporters with lots-o-cash for worthless paper. Now they'll blame the Dems for not supporting Bush's plan.

A, Palo Alto,CA, USA

Wouldn't be NICE if Brits would become a bit more informed as to the true cause of this crisis. Since the late 1990's when liberal democrats began to strong-arm American banks to provide home ownership to 16-17,000,000 of the lower economic classes, whom could never truly afford the loans.

Dr. Mark , Lincoln,

This is not about being cheated by a few goal hungry spivs, its human nature, who says that any given person would have behaved the same. Thats sort this out now and in future add a tad of regulation so it does'nt happen again?

Rich, London, England

Quit proclaiming that "deregulation" caused this. Please explain which specific deregulations caused this and how! Details, not bromides, please.

It was actually the CRA and other leftist regulations that required banks to give loans to poor people for "affordable housing" that caused this.

Alano, Virginia, USA

If the rising cost of health insurance didn't bankrupt ordinary Americans, this would not be a crisis.

There are many reasons for this state of affairs, but saying that "low income folks" didn't pay their bills is a mistake. There are many reasons for this, and blaming the poor is a cop-out.

brizzle, San Diego, CA,

All the "bad paper" that is fueling these banking failures is a direct result of Democrats demanding for the past few years that home loans be given to people that otherwise were too high-risk or could not afford them. The bright side is that the "bad paper" is backed by actual houses.

John, Raleigh, NC, USA

I agree with Stu Peters, the act states that it is not to exceed 700bn worth of outstanding debt, AT ANY ONE TIME. Also to note, that they requested to remove the provision that caped the amount they could take by law and placed 11 trillion (our GDP) in its place. Basically a Blank Check, our GDP

Benoni, Pittsburgh, USA

SEC Chairman Cox removed rules to make it easier for shorts to make money in the stock markets since mid last year! Cox and his friends are making loads SHORTING

removed uptick rule in placed since 1937
let NAKED shorting persist -ie no transparency
much relaxed stock market circuit breakers

Dennis, Allen, USA

The price you pay for lending to high risk borrowers and lending more than 2 and a half joint salaries. Let it all crash and teach those a lesson in taking a little responsibility for their actions rather than expecting others to bail them out-Start living in the real world people!

Richard, London,

Phil, Houston, USA's comment #2 "de-regulation did not cause this but rather regulations requiring banks to make "affordable mortgages" available to low income folks." is WRONG.
The Act requiring this www.ffiec.gov/cra/ was passed in 1977. If it caused the meltdown, it should have happened then.

A, Palo Alto,CA, USA

CALL YOUR SENATE AND HOUSE IMMEDIATLY!!

tell them to reject this plan. If you have not done your homework on this, you need to. This is the worst idea in the history of the United States... EVER...

Ben, Roanoke, USA

Anyone know why the dollar is still holding up despite this mess?

KT, London,

In 1995 Clinton mandated Fannie Mae and Freddie Mac change their lending to count unemployment and Social Security payments as income-wanted more govt lending to uncredit worthy borrowers-in 2005 McCain tried to reign this in and regulate how they lend under a Bill which was voted down by Democrats

Richard Z, Lakewood, U.S.A

Give us, the TAXPAYERS this money and we will bail ourselves out! Just think what each taxpayer over 18 could do with say...$150,000.00 each? That's a lot less than $700 BILLION. I would invest in REAL ESTATE. How about you?

Dave, Derry NH, USA

'They' keep saying that 'this must never happen again'. When you get an economy based on shopping and house-price rises (and not manufacturing) and credit is oh so easy to get, it must surely have occurred the 'them' that there would at some time be a massive reaction. And I am not an economist.

James, Bristol,

Ricky, de-regulation did not cause this but rather regulations requiring banks to make "affordable mortgages" available to low income folks. If everyone would pay their bill there would be no crisis.

Phil, Houston, USA

Thank goodness. Government and the banking plutocrats created this crisis...who now expected the same criminals to "fix" it by continuing the same policies that created this? Let the markets now clean out the malinvestments

Rob, Sparta, NJ, USA

Thank goodness the House voted to reject the so called "bailout."

greg, Blairstown, USA

Wouldn't it be nice if the right wingers who blog here showed a little humility. After demanding de-regulation you got it, and now that it's all gone pear-shaped, well, that's someone else's fault. As for what to do now, if you think the answer is inaction, then be prepared for global catastrophe.

Ricky, Bakewell, UK

How many banks can this hopeless government nationalise - which is next? And the remaining banks are expected to foot the bill! This could end up with all banks nationalised. And the economy in total tatters. Maybe it's time Labour started nationalising the housebuilders-it might make a profit.

David, London,

I think leaders are going with the devil they know.

Better to bail out and place the weight on people who can do nothing about it than hope the markets simply "correct themselves"

This didn't work in the 1930's, probably even less so now.

We certainly live in what will be a historic time.

Elio, cambridge, US

Our chancellor Mr Darling is a very rich man. How did he make his money before this job.. I think you will find it was in the money market

peter, tintern,

You Europeans are so caught up in sneering at the US that you ignore your on financial state. I just read an article talking about Europe gloating and just started laughing...were you stupid enough to think that our markets aren't so deeply intertwined that the same depression isn't coming for you?!

Shawn, Boston , United States

President Palin would have prevented this whole mess. She can see a bank from her house, so she understands finance.

RBA, Washington, DC, USA

break out the champagne david. you are a "shoe in" bring the general election on gordy!!! you canott bottle out for ever!

sheila wilson, bishop's stortford, herts

Maybe it's about time we should all face our eyes towards Heaven and seek Gods help in prayer because it's going to take divine intervention of Jesus Christ to fix the mess men and woman have created for themselves.

It makes no sense not to seek God for his forgiveness rather than rely on man!

Tony, Jacksonville, USA

What a disaster Labour is. Nationalising a second bank has destroyed UK and foreign investor confidence in the UK.

They should have bought with recourse say 5 years down the line BB's "toxic" debt.

So many people are seeing their pension savings and/or jobs wiped out due to this incompetence

David, London,

Very recently, B&B shareholders were invited to buy 'rights' shares for 80p, later reduced to 55p, and some did. This stinks of non-disclosure, meriting investigation by the FSA; while the bonuses paid its bosses, after only weeks in the job, scream for the attention of the Serious Fraud Office

Noel Falconer, COUIZA, France

Who do you work for? From whom do they get their loans ? Where do you buy your food? From whom do they get their loans to operate? Bonuses mostly paid in shares, now worthless, so bankers are stuffed too. Who borrowed money they couldn't repay? Shares are way up on 5 years ago.

edward, London, England

It will be more than $700 billion, much more - read the smallprint on Page 40 of the draft, "the amount shall be limited to $700 billion AT ANY ONE TIME."
Revolving billions for two years, buy a load of toxic debt, flog it off. go buy some more, etc.
Yet, no liquidity as such for the banks. ??

Stu Peters, Nova Scotia,

I am starting to think that this government bailout is a misnomer. Call it reparations, instead. It was a croocked and fraudulent scam that promoted writing and securitizing the bad mortgages. Good intentions do not justify unsound business practices. It is just that the government buy this garbage

Claire Solt PhD, West Palm Beach, USA

So the USSA has run out of liberal bazookas? If you call yourself a capitalist then be one. In tooth and claw.

Rahul Kalla, London, UK

Drops a little more and I can finally come over to visit. Anyone have spare Manchester United tickets?

Erik, Denver, USA

If the problem is homeowners defaulting and consumers not spending then give us the $700 billion dollars in tax rebates and the man on the street will get the economy moving again

chris, cardiff,

This is the product of one major problem - around the world people have believed that the Markets should decide. Most of those who complain about the British Government ironically are fans of this illusion.

Let's get it right. Markets are not moral, decent or even sensible. End of story.

Alan, Bournemouth,

If the pound continues to fall against the dollar, then it makes sense to for people to convert pounds into dollars, because they get more money back when they exchange their dollars back into pounds.

Michael, Edinburgh,

Ha! Ha! I've got no money, so I'm safe.

Stan Snowdon, Congleton, Cheshire

Loosing the battle 700 billions USD to taxpayers, USA having so well exported their crazy subprime, now the $ is up against £ and Euro ! ! !
Ha ha ha; LOL, we are living in a funny world ! Rewards to the guilty one ! ! !

Michel, Aix en Provence, France

It is now clear that Mc Broon doesn't like people who save, e.g those with a pension plan, or those who invest in shares. Those people will never, ever trust Labour again. Quite rightly.

Bill Peter, Kuala Lumpur, Malaysia

Not surpising the markets have dropped. The fundamental problem of over indebted consumers still exists. The real economy can not be bailed out and the markets, deep down, know this. The markets are on the edge and it is just a matter of time before we see huge drops.

Chris, Chipping Norton,

B&B Shareholders added cash when they wanted it now they get nothing?.....Executives get paid for stuffing it all up.
Now this is grossly unfair and needs to be fixed,shareholders need at least 55p.

Keith, Hull, UK

Ah! Brown's red herrings the short sellers must be at it again.

John, Lincoln,

This is all due to greed and self regulation!
All these huge bonuses and playing with our hard earned money. They are beeing brought down to face the wrath of turmoil they have created.
So what do the labour party do?
Bail out companies that have been left to play in the park!

Philip Hodge, Middlewich, United Kingdom