The House defeats the bailout plan and shares plunge

The House of Representatives in the United States has defeated the proposal originally crafted by U.S. Treasury Secretary to help bail the U.S. out of financial difficulties. My hope is that Congress can get to business and craft a comprehensive solution, which this legislation was not.

Meanwhile markets have imploded on the news and further immediate bankruptcies are almost certain.

Fear swept across the financial markets Monday, sending the Dow Jones industrials down as much as 705 points, as the financial bailout package was defeated by the House.

As the vote was shown on TV, stocks plunged and and investors fled to the safety of the credit markets, worrying that the financial system would keep sinking under the weight of failed mortgage debt.

See the full story below

Stocks tumble as House defeats bailout plan – Yahoo! News

The global economy has crashed: we need a comprehensive credit crisis plan
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Edward Harrison is the founder of Credit Writedowns and a former career diplomat, investment banker and technology executive with over twenty years of business experience. He is also a regular economic and financial commentator on BBC World News, CNBC Television, Business News Network, CBC, Fox Television and RT Television. He speaks six languages and reads another five, skills he uses to provide a more global perspective. Edward holds an MBA in Finance from Columbia University and a BA in Economics from Dartmouth College. Edward also writes a premium financial newsletter. Sign up here for a free trial.