The House of Representatives has finally reached a decision on President Bush’s bailout bill. The bill was narrowly…rejected. Since then, Wall Street has fallen apart…again. The Dow Jones industrial markets closed almost 800 points down. The Standard and Poor’s 500 index is off 106 points. The Nasdaq Composite Index is off almost 200 points. Citigroup also bought all of Wachovia’s assets. All of this is because the House of Representatives rejected the bailout bill.

The biggest industries to suffer today have been the technology industry and the energy industry. Worries that all of the economies around the world are slowing down have caused the slow down. Consumers around the country aren’t the only ones who were shocked by the vote. Traders of Wall Street were shocked that the bailout bill vote ended up the way it did. However, it is possible that each side will take part to negotiate a new version of the bill.

Now, let’s look at the Citigroup situation. The Federal Deposit Insurance Corporation has again facilitated another acquisition. It was announced this morning that Citigroup will acquire all of Wachovia’s banking operations. The FDIC was sure to clarify that Wachovia did not fail. It further went on to state that all of its depositors were and still are protected. This acquisition is to help Wachovia’s burdens from the mortgage loan mess.

Gas prices are still affecting our economy. The price of crude oil dropped from $106.89 to $96.37. This is because there are so many concerns about the global demand being completely weakened.

The initial bailout plan that was proposed by the Bush administration has been tweaked several times. Both sides, the Democrats and the Republicans, worked all weekend long on a bill that would please both sides. Here is what they came up with:

1. The bailout plan legislation will be expanded to include the bad assets of pension plans, local governments and small banks.

2. Includes a Republican demand that would allow the government to insure the value of some of the bad loans and toxic securities instead of buying them outright.

3. New executive-compensation limits would be part of the legislation that prevents “golden parachutes.”

4. The government would get $250 billion up front, with an additional $100 billion based on the president’s approval. The remaining $350 billion would have to undergo congressional review.

Lawmakers are confident that this new bailout bill will pass in the next few days. Until then, our economy continues to go downhill.

President Bush addressed the issue of our failing economy to the entire country on Wednesday night. His address was mainly a warning to all Americans and especially those lawmakers who are reluctant to pass his $700 billion bailout plan. President Bush warned that if this plan is not passed, jobs will be lost, businesses will be forced to close, retirement accounts will fail and our country will be headed towards a “long and painful recession.”

Our economic problems have surpassed President Bush’s ability to correct the problem. In fact, President Bush extended invitations to both presidential candidates, Barack Obama and John McCain, to work out a compromise. One of the aforementioned men will “inherit” the weakened economy in just four months. Key congressional leaders were also invited to help solve the problem.

President Bush stated, “Without immediate action by Congress, America could slip into a financial panic and a distressing scenario would unfold.” President Bush expressed his concern for our troubled economy. He is welcoming advice and recommendations from both political parties. However, he said that he would not put any regulation in force that would prohibit economic growth.

The Bush administration’s bailout plan has already been met with extreme skepticism. It was announced just last weekend, and has already undergone a massive amount of controversy. Americans and lawmakers, on both sides, are very concerned about the impact it will have on American taxpayers and the entire private sector. Many wonder whether the timing is right to enact such a large plan. Similarly, many people are concerned with the massive amount of debt the plan entails.

President Bush addressed these concerns. He stated that he was extremely hesitant to put taxpayers money on the line to help failing businesses. Critics of the plan have been concerned that taxpayers will have to bail out individual companies and struggling businesses. Bush stated that individual companies are not the main focus. He also tried to put Democratic fears at ease about whether the CEOs of these failing companies will be rewarded. They will not, he said.

Bush understands that this country faces the largest financial crisis in decades. Because of this, he pleaded with Americans everywhere, especially lawmakers, to accept this plan. Senators Obama and McCain also issued a joint statement urging lawmakers to act and to act promptly. Something drastic must me done if our country wants to rebound quickly from the negative effects of a failing economy.