"We need to put something back together that works," a grim-faced Treasury Secretary Henry Paulson said after he and Federal Reserve chairman Ben Bernanke joined in an emergency strategy session at the White House. On Capitol Hill, Democratic leaders said the House would reconvene on Thursday in hopes of a quick vote on a reworked version.
The Bill went down, 228-205, even though Paulson and congressional leaders proclaimed a day earlier that they had worked out an acceptable compromise in marathon weekend talks.
Stocks started plummeting on Wall Street even before yesterday's vote was over. Dow Jones slumped 777 points, far surpassing the 684-point drop on the first trading day after the Sept 11, 2001, terror attacks.
65 Republicans joined 140 Democrats in voting "yes," while 133 Republicans and 95 Democrats voted "no."
"We're in this moment, and if we fail to do the right thing, Heaven help us," Republican Paul Ryan said.
Republican John McCain declared: "Now is not the time to fix the blame; it's time to fix the problem."
Democrat Barack Obama said: "Democrats, Republicans, step up to the plate, get it done."
Republican Barney Frank, chairman of the Financial Services Committee said: "Because somebody hurt their feelings, they decide to punish the country."
"The legislation have failed; the crisis is still with us," said House Speaker Nancy Pelosi in a news conference. "What happened today cannot stand."
Will the crisis leads to a global meltdown and lead to a global recession? I feared it will!
KLCI down by 24 points this morning
At 9.30am, the benchmark Kuala Lumpur Composite Index (KLCI) declined 23.78 points or 2.36 per cent to 995.94, after opening 24.60 points lower at 995.12.
Dow Jones is down by 7% yesterday. So, brace ourselves for similar adjustments. Hope the Hari Raya break would cushion the slide.