FXstreet.com

FXstreet.com (Barcelona) – Against all expectations, the U.S. House of Representatives has voted against the $ 700 billion bailout of financial industry by 228 votes to 208 as congressmen defy their leaders to defend their constituents.

Democrats as well as Republicans have voted against the plan, 95 of the former joined 133 of the latter, while 140 Democrats and 65 Republicans backed the bill. Supporters of the plan have shown their commitment to rescue the plan, although with several modifications, to be voted later on, not earlier than Wednesday or Tursday, anyway.

Markets plummeted on the news, Dow Jones fell more than 5% and other indexes posted sharper declines. Oil prices tumbled and gold rallied as a safe haven.

Treasury Secretary, Henry Paulson spoke on the White house after the voting to warn about the possibility of credit for big and small business drying up which would make them unable to pay salaries or buy inventory, while, on the other side, opponents argued that the bill was put up in too much haste and that it could mean using taxpayers money to pay up Wall Street’s wrong practice.

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