*~1Best~* Market Timing & Trend-Signals

[*~1Best~*]

15 vote ~




~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

HOUSE HAS BEGUN TO VOTE ON REVISED BAILOUT BILL
CNBC staff and wire reports
| 03 Oct 2008 | 01:09 PM ET

The House began voting on a revised $700 billion financial rescue package after lawmakers predicted that there were finally enough votes to approve the measure.

A Republican member of the House Financial Services Committee told CNBC shortlhe believed there were enough votes in the House to pass the bill.
# What's in the Revised Measure
# Why There's a Tax Break for Arrows

"We feel like we do" have enough 'yes' votes," Rep. Adam Putnam of Florida said. "(House) Speaker (Nancy) Pelosi has said she will not bring the bill to the floor if it doesn't appear they have the votes to pass it."

He said both Democratic and Republican leaders had been talking to their members to line up the votes.

He said public comments had indicated a number of lawmakers who had voted against the bill on Monday had been persuaded to vote for it by new data or changes that had been made to the bill.

"I'm optimistic about today," House Minority Leader John Boehner told reporters earlier. "We're not going to take anything for granted. We're going to continue to talk to our members. But it's time to act on behalf of the American people. It's about their savings. It's about their jobs."

US stocks rallied on hopes that the House would pass the measure, which was rejected earlier this week. The Senate revised the bill, adding billions of dollars ot tax breaks to sweeten the package, and approved it Wednesday night.

The bill would allow the US Treasury to buy toxic debt from U.S. banks, which many economists said is needed to head off the worst financial crisis since the Great Depression.

Earlier, the US reported its biggest monthly job loss in 5 1/2 years, coming on top of a pile of economic data pointing to an approaching recession. Data showed the U.S. services sector holding up.

"The data has been horrible all week long. It absolutely does put pressure on them to get this rescue act passed," said Fred Dickson, market strategist at D.A. Davidson in Lake Oswego, Oregon. "It's a bill with risks, but it's a plan and the market needs a plan."

In a positive sign, Wells Fargo, one of the strongest U.S. banks, stepped in to buy Wachovia, saying it didn't need the government help that Citigroup Inc required for an earlier effort to rescue Wachovia.

A House Republican who voted against the Wall Street bailout bill on Monday and now supports it predicted Friday that enough votes "are probably in place" for passage.

Video: House GOP leaders discuss bailout package.

Rep. Zach Wamp of Tennessee left a closed-door meeting of House Republicans and told reporters that there were at least 12 House Republicans and eight House Democrats who planned to switch their votes to support the $700 billion financial industry bailout.

"I believe there is enough movement on both sides" to pass the bill, Wamp said.

Only a few lawmakers are poised to switch their votes in the other direction, from "yes" on Monday to "no" on Friday, he added.

For Investors
# Protect Your Wealth in Turbulent Times
# Is This Really the Market Bottom?
# Five Ways to Play This Wild Market
# Jim Cramer's Web Exclusive: Pans
# Buffett's Three Rules for Crisis Investing

"The best action we can take to limit damage to the economy is to pass the emergency rescue package legislation in the House," said spokesman Tony Fratto.

The plan likely to be voted on in the House would allow the government to spend billions of dollars to buy bad mortgage-related securities and other devalued assets from troubled financial institutions. If it works, advocates say, that would allow frozen credit to begin flowing again and prevent a serious recession.

Black lawmakers said personal calls from Democratic presidential nominee Barack Obama helped switch them from "no" to "yes," as Republicans and Democrats alike said appeals from credit-starved small businessmen and the Senate's addition of $110 billion in tax breaks and other sweeteners had persuaded them to drop their opposition.

"I hate it," but "inaction to me is a greater danger to our country than this bill," said GOP Rep. Zach Wamp of Tennessee, one of the 133 House Republicans who joined 95 Democrats in rejecting the measure Monday, sending the stock market plummeting.

Others said they were agonizing as they decided whether to change course and back the largest government intervention in markets since the Great Depression.

"I'm trying desperately to get to 'yes,"' said Rep. Carol Shea-Porter, D-N.H. Obama and his Republican rival, John McCain, phoned reluctant lawmakers for their help.

Rep. John Lewis, D-Ga., told a closed-door meeting of House Democrats that he would support the bill after speaking with Obama about it.

Congressional leaders worked over wayward colleagues wherever they could find them.

Rep. Steny Hoyer, the second-ranking House Democrat, said Thursday there was a "good prospect" of approving the measure but stopped short of predicting passage.

"I'm going to be pretty confident that we have sufficient votes to pass this before we put it on the floor," Hoyer said.

Lawmakers were expecting to use at least some of 90 minutes scheduled for debate in choreographed question-and-answer sessions known as "colloquies," in which lawmakers ask for assurances about what the legislation will or won't do.

That could make it easier for people switching their votes to explain why they did so.

The top Republican vote-counter, Rep. Roy Blunt of Missouri, did predict the measure would be approved.

President Bush said "a lot of people are watching" the House and was calling dozens of lawmakers searching for support for the rescue, a spokesman said.

Slowly but surely, converts were coming forward.

GOP Rep. Ileana Ros-Lehtinen of Florida, said she was switching her "no" vote to a "yes" after the Senate added some $110 million in tax breaks and other sweeteners before approving the measure Wednesday night.

"Monday what we had was a bailout for Wall Street firms and not much relief for taxpayers and hard-hit families," Ros-Lehtinen told The Associated Press.

"Now we have an economic rescue package." Republican Rep. Jim Ramstad of Minnesota also switched to "yes," partly because the Senate attached the bailout to legislation he spearheaded to give people with mental illnesses better health insurance coverage.

Rep. Gresham Barrett, R-S.C., also said he'd back it.

Democratic Rep. Emanuel Cleaver of Missouri was switching, too, said spokesman Danny Rotert, declaring, "America feels differently today than it did on Monday about this bill." And Democratic Rep.

Shelley Berkley of Nevada said she would back the bill after business leaders in her Las Vegas-area district made it clear how much it was needed.

She said, "There isn't a segment of the population that hasn't been slammed and is not asking for some relief." Rep. Elijah Cummings, D-Md., said he was on the verge of voting "yes," based on conversations with Obama.

"I've got a man who I'm hoping will be president who's saying that's he's going to do the very things that I want done," he said.

"It makes me feel a lot better." Rep.Bobby Rush, D-Ill., also said Obama was asking him to reconsider his vote. "I'm seriously listening," Rush said.

The same tax breaks that helped satisfy some Republican critics angered conservative "Blue Dog" Democrats who are concerned about swelling the deficit.

Still, Hoyer predicted the number of Democratic defectors "is going to be minimal." The Senate breathed new life into the measure Wednesday after the stinging House defeat, voting 74-25 to approve the bailout, with additions designed to appeal to key constituencies.

In efforts to appease GOP opponents, it included raising, from $100,000 to $250,000, the limit on federal deposit insurance.

The bill also extends several tax breaks popular with businesses, provisions that are favorites for most Republicans.

It would keep the alternative minimum tax from hitting 20 million middle-income Americans, which appeals to lawmakers in both parties.

And it would provide $8 billion in tax relief for those hit by natural disasters in the Midwest, Texas and Louisiana.


—AP and Reuters contributed to this report.
© 2008 CNBC

URL: http://www.cnbc.com/id/27007724/