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Some In House Reconsidering Bailout Support

House Pushed To Vote For Package

POSTED: Thursday, October 2, 2008
UPDATED: 7:06 pm CDT October 2, 2008

More votes appear to be changing in the House of Representatives, but not always the way party leaders were hoping.

Section: Save Money

Democratic and Republican leaders are trying to get reluctant colleagues to support the financial industry bailout plan when it comes up for a vote. And some lawmakers who voted against it on Monday are saying they'll support the revised version this time.

But a handful of Republicans who voted for it on Monday now appear less likely to do so. U.S. Rep. Spencer Bachus of Alabama denounced what he calls a "rush to judgment." He said Congress should approve just a fraction of the money, and then go home and face angry constituents.

With the outcome uncertain, stocks fell again, with the Dow losing nearly 350 points.

President George W. Bush again joined congressional leaders in lobbying for the additional dozen votes that would reverse Monday's setback.

The top Republican vote counter, Roy Blunt of Missouri, predicted it'll pass. House Majority Leader Steny Hoyer said there's a "good prospect" of that. He said he won't bring it to the floor unless he's "pretty confident" it'll be approved.

Bush: 'People Watching' House On Bailout

Bush said Thursday that "a lot of people are watching" the House as it considers financial rescue legislation and said lawmakers must listen to voices urging passage.

Speaking to reporters at the White House a day before the House vote, Bush warned that tight credit is freezing the ability of small businesses not only to expand, but to exist. He said the bill before the House is the "best chance" to correct the problem.

Bush said the issue is affecting employees and families across the country and that lawmakers "must listen" so confidence can be restored in markets and financial institutions. The House rejected a rescue package on Monday, shocking Wall Street and Washington. The Senate passed a bill Wednesday night.

The Senate is handing the House a sweetened-up version of the $700 billion financial bailout plan -- a measure many Republican lawmakers have been viewing as a bitter pill to swallow.

Since the Senate took up the bill, there was a push to add on legislative goodies to turn those negative House votes around.

The rescue package would allow the government to spend billions of dollars to buy bad mortgage-related securities and other devalued assets held by troubled financial institutions.

The add-ons -- mostly tax measures -- include energy and business tax breaks, a one-year fix of the alternative minimum tax and tax relief for victims of recent disasters.

A U.S. Chamber of Commerce official said: "Pain is always a good way to focus people."

Earlier, Bush praised the Senate for approving the financial bailout and is calling on the House to do the same.

In a statement released after Wednesday night's vote, Bush said he believes members of both parties in the House can support the legislation. He said the American people expect and the economy demands that the House pass the bill.

In the final Senate vote, 40 Democrats, 33 Republicans and independent Sen. Joe Lieberman of Connecticut voted "yes." Nine Democrats, 15 Republicans and independent Sen. Bernie Sanders of Vermont voted "no." Sens. John McCain and Barack Obama cast "aye" votes.

8 In 10 Fear Financial Hit

Meanwhile, the phone calls from constituents -- overwhelmingly against the bailout before -- are now more evenly divided. People's views have been shifting since stocks nose-dived on Monday and they realized Wall Street's troubles could become their own.

A new poll suggests Americans are worrying whether their jobs, home values, children's futures and retirement plans are at risk because of the financial fallout.

According to an AP-GfK poll, eight in 10 people surveyed fear the crisis will affect them directly. But 45 percent of all adults surveyed still opposed the proposed government bailout, which was passed by the Senate on Wednesday.

Nearly 40 percent were in favor of the $700 billion package and 16 percent were not sure.

The banks get most of the blame for the crisis caused by risky mortgages, followed closely in the poll by the federal government for not providing adequate regulation.

About 55 percent of Americans polled said the government should have a role, but only a limited one, when bailing out failing private businesses.

The AP-GfK poll interviewed 1,160 adults nationwide.

Dow Sees Another Big Drop

Wall Street suffered another huge drop amid growing fears that the government's financial rescue plan might not be enough to ward off a recession. Investors are also discouraged after news from the government of declining factory orders and a seven-year high in jobless claims.

The concern on the Street is that the $700 billion bailout plan, even if it wins final congressional approval in the House, won't be enough to stimulate growth. Investors appeared to be pulling more money out of the market and settling in for a prolonged economic winter.

The Dow Jones industrials fell 348 points to the 10,482 level, according to preliminary calculations.

The S&P dropped nearly 47 points to 1,114.

And the Nasdaq composite lost 92 points to 1,976.

Declining issues held a 5-1 lead over advancing stocks.

NYSE volume came to 6 billion shares. Nasdaq volume was 2.2 billion shares.

Oil was among commodities seeing price declines. Light, sweet crude for November delivery fell $4.56 to settle at $93.97 a barrel.

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