Below The Beltway

Notwithstanding yesterday’s humilitating defeat on the floor of the House of Representatives, President Bush and Congressional leaders vowed this morning to keep pushing for a financial services industry bailout:

WASHINGTON —President Bush and Senate leaders of both parties vowed on Tuesday to work toward quick approval of a financial bailout plan despite the House’s rejection of a $700 billion proposal that the White House had negotiated with Congressional leaders of both parties.

“We are at a critical moment for our economy,” the president said. “Congress must act.”

Senators Harry Reid of Nevada, the Democratic majority leader, and Mitch McConnell of Kentucky, the Republican minority leader, echoed the president’s determination on Tuesday.

“We are committed to keeping the progress on this rescue package moving forward,” Mr. Reid said. “In the coming days, I will continue doing everything possible to see that this dire and avoidable financial crisis has the best possible outcome.”

Mr. McConnell also predicted that Congress would pass rescue legislation. “We will get the job done,” he said. “We will get it done this week. Hopefully, that will reassure the American people that Congress can rise to the occasion, act like grown-ups, if you will, and get the job done for all of our people.”Though financial markets around the world plunged on Monday after the rejection, the American markets rebounded Tuesday with both the Dow Jones industrial average up 2.7 percent and the Standard & Poor’s 500-stock index up 3.5 percent. The Dow was up 280 points in late morning trading.

Investors seemed to be optimistic that Washington may still act to approve a financial rescue plan, after the House’s defiance of the president and party leaders left lawmakers groping for a resolution. While the markets were calmer, overnight lending between banks was stalled, analysts said, exacerbating the tight credit market.

Mr. Bush said on Tuesday that his administration would talk with Congressional leaders again, so that Congress could begin “moving legislation forward when members begin returning to the Capitol” on Wednesday, after the Jewish New Year.

Acknowledging that the vote on the plan was “difficult,” Mr. Bush said the cost of failing to ultimately pass the measure would be far higher than the cost of the bailout. As he had on Monday, Mr. Bush said on Tuesday that he was confident that an agreement would be reached. “I am disappointed by the outcome, but I assure our citizens and citizens around the world that this is not the end of the legislative process,” he said.

The presidential candidates, Republican Senator John McCain and Democratic Senator Barack Obama, also urged Congress to make another attempt, even as they announced additional proposals they said would help shore up public confidence in the nation’s financial system. Both candidates proposed that the government move to insure consumers’ bank deposits up to $250,000, raising the current federal bank deposit insurance limit of $100,000.

Senator McCain also said he recommended to President Bush on Tuesday morning that a $250 billion Treasury stability fund be used to “shore up our institutions,” and that that the Treasury use its ability to buy up to $1 trillion in mortgages.

“By the way, the first thing I’d do is say, ‘Let’s not call it a bailout. Let’s call it a rescue.’ Because it is a rescue. It’s a rescue of Main Street America,” Mr. McCain said Tuesday morning on CNN.

Yea, because a chance in terminology will make all the difference when it comes to what even a member of the Republican leadership in the House that supported the bill called a “crap sandwich.”

Given the gravity of the situation, I’m sure we would find our Representatives hard at work today trying to come up with a new plan that would actually pass.

Right ?

Well, not exactly:

4:07 P.M. –

The House adjourned pursuant to a previous special order. The next meeting is scheduled for 12:00 p.m. on October 2, 2008. On motion to adjourn Agreed to by voice vote.

But surely the Senate will come to our rescue:

Tuesday, Sep 30, 2008

10:00 a.m.: Convene and resume consideration of H.R.2095, the Federal Rail Safety Improvement Act.

But what about the crisis ?

Umm, well:

The market regained some ground at the opening bell this morning after a historic sell-off yesterday when lawmakers voted down a rescue plan for the financial sector.

The Dow Jones industrial average had gained about 300 points, or 2.8 percent, by noon today after losing 778 points yesterday — a record point drop. The broader Standard & Poor’s 500-stock index and technology-heavy Nasdaq were up about 3.6 percent.

Apparently, the Great Depression of 2008 has been postponed in observance of Rosh Hashannah.