No Deal

Bush’s proposed $700 billion financial bailout plan was rejected today, when the House vote turned against the measure due to the many risks, sending the Dow down 700 points, CNN reports.

Less than 1/3 Republicans were in favor of the bill.

President Bush is said to be “very disappointed”.

The core of the bill is for the government to purchase troubled assets, which some Republicans argue would be a blow against economic freedom, weighing either a loss of short term prosperity or a long term loss of economic freedom. Once the government enters the financial market, it will not leave.

Supporters of the vote were scrambling to put the bill up for another vote.

[image source: TheEconomist]

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