this "stinging rebuke" was handed to the Bush administration by its own party (15% for), while 60% of Democrats (according to CNN) voted for it.

Hasn't the market been mostly down all morning since it opened? Earlier I was reading that it was a done deal, but the little lines at Bloomberg were sloping down anyway. Weren't they? Didn't those banks collapse in Europe while we were being assured that the deal was done?

the House servers are jammed up and you can't log on to see the vote.

World markets slump as panic grips the banking sector

The US central bank said it was increasing its swap lines with other central banks by a total of 330 billion dollars to bring the amount available to 620 billion dollars.

China has stopped financing the USA until the bill passes. The USA is expected to last 2 weeks without Chinese funding. They postpone the collapse with those swap agreements.

The credit card companies have silently started to limit the credit available to their customers.

the bailout, at least in its original form and within the context of "bailing out Wall Street" meme. Many Congresspeeps reported that constituent sentiment was showing "two thumbs down", and that the passage of the bill was viewed largely as a sop to prop up the stock market in the short-term (and the reaction today on the NYSE and NASDAQ on the failure to pass reinforces that perception). Tens of millions of Americans have NO position in the markets, and millions of others only passively so, through mutual-fund holdings in their IRAs, 401ks, whatever. It's no wonder that progressives and conservatives both voted this dog down, as the final form of the bill simply didn't register the concerns of "Main Street", as the non-financial elite sector of the public is now labelled.

The non financial commercial paper market is doing reasonably. There is no seizure there.
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aAHCiRX_cqUo

Here's where the seizure is
http://www.bloomberg.com/apps/news?pid=20601009&sid=aKKqASneZ83s&refer=bond

If the Fed backstopped this, possibly being the market maker of last resort this would come unjammed. The bad banks can just go broke without anyone's help.

Dems and Republicans who want to save New York by saving Wall Street were rebuked. Remember the two senators from NY are Dems.

http://mauberly.blogspot.com/

no amount of fingers-in-the-dike "bailout bill" can stop the inexorable undwinding that we are now witnessing. Global financial systems are purging themselves of septicaemic toxins, and unfortunately billions of people across the planet will be hurt in the process, certainly in the short term. In the US, 20-25 years of credit-based "growth", where a growing public/private indebtedness was financed by foreign purchases of T-notes, the persistence of the dollar as a reserve currency despite ever-growing financial instability, the unprecedented rise in "defense" expenditures to support hegemonic aspirations, and "tax cuts" as the domestic mantra for "trickle-down" bogus economic "stimulation" has at long last come a cropper. Welcome to the latest banana republic, broke, untrusted, and the "full faith and credit" of the US government at severe risk, and those hundreds of billions of dollars earned by the financial sector over the past several years alone stand as a monument to greed and irresponsibility that has mightily contributed to the state that we find ourselves today.

mid-afternoon, up to the Exchange. I will admit I am bit of a voyeur. If there is a train wreck in the neighborhood, I will go look. But there was nothing there. Lots of media types were around with nobody to talk to. The real drama was unfolding inside the building. A reporter with a German accent approached me asking if I worked on Wall Street. I deferred and went back to work.