Despite the Senate saying yes, the House said no to the $700 billion emergency spending package on Monday. It failed 228-205. The failed vote lead to a huge drop on Wall Street and forced leaders to search for a new plan to help the economic situation. While Treasury Secretary Henry Paulson announced that quick action was necessary, many taxpayers made it clear they didn’t want their tax dollars spent to help financial institutions that made big mistakes.
While Congress is breaking for Jewish holidays until Thursday, some new ideas are already being discussed. One idea is to double the $100,000 ceiling on federal deposit insurance (FDI). Another possible move would end rules that require companies to devalue assets on their books to reflect the price they could get in the market.