It’s official: the compromise bailout plan that was negotiated over the weekend has been defeated in the House, 228-205. On Wall Street, stocks are plummeting.
It’s not clear (to me, anyway) whether a bill can be crafted that will win majority support in the House. Given the improvements that were made as a result of the efforts of the House Republican leadership, I would guess that the bill’s opponents are likely to oppose any bailout bill, on principle. If that’s true, we’ll soon find out whether the predictions of economic catastrophe, should the crisis not be addressed by Congress, were correct.
PAUL adds: It’s a good thing I didn’t write that post saying the deal was inevitable.
To comment on this post, go here.