Economy & Budget

The Dow Jones Industrial Average dipped slightly as traders watched the House of Representatives vote on the Wall Street package that will, if signed by President Bush, grant the Treasury secretary authority to spend billions of dollars purchasing toxic assets from collapsing financial firms.

In the last 14 minutes of the 19-minute vote, the Dow dipped 24 points, from 10739.63 with 14 minutes to go to 10715.63 as the vote was gaveled closed, according to quotes from CNNMoney.com.

House members broke out into applause when the number of yes votes for the bailout package reached 218, the number that guarantees passage.

It came at 1:23 p.m., which is 15 minutes after the vote opened. There are still a handful of members who haven't voted, but the number of votes backing the bailout appears to be heading north of 250.

The House is voting right now on the bailout package.

The bill passes if there are more "yes" votes than "no" votes. Supporters of the package are looking to get 218 votes, which would be a majority of members and would thus guarantee passage.

Voting began at approximately 1:08 p.m. On Monday, when the bailout bill failed, the vote was held open for approximately 40 minutes, as leaders on both sides tried to get opponents of the bill to switch their votes.

House Minority Leader John Boehner (R-Ohio) said it was lawmakers' responsibility to address the economic crisis.

"Above the speaker's rostrum is our motto, 'In God We Trust.' Probably one of the most serious votes that any of us will ever cast. I sent my prayers this morning, like I do every morning. So that I can understand and feel better about the votes that I cast. But even if we pass this bill today, let's not kid ourselves. We're in the midst of a recedssion. It's going to be a rough ride. But it'll be a whole lot rougher ride if we don't pass this bill."

He added:

House Speaker Nancy Pelosi (D-Calif.), accused Monday by House Republicans of giving a partisan speech, sounded a less partisan tone in her floor address Friday.

"In a bipartisan way, we rejected that proposal," Pelosi said.

She then listed the ways in which she thought the bill has been improved since it was first proposed. She noted provisions allowing the government to try to recoup any losses in five years and limits on executive compensation.

She also reached out to centrist Blue Dog Democrats, who have railed against deficit spending and said they were disappointed in tax incentives included in the package that don't come with offsets.

"No new deficit spending must be our mantra," she said.

On Monday, after the bailout bill failed, House Republicans said in a news conference that as many as a dozen Republicans were ready to vote for the measure until Pelosi gave her speech.

Rep. Barney Frank (D-Mass.) has turned to a classic congressional tactic as he manages the floor debate over the bailout bill.

He's had Democratic colleagues bring up their concerns about the bill in their floor speeches. The skeptical members then yield to Frank, who addresses their concerns before yielding back. At that point, the members have said they support the bill.

Rep. Donna Edwards (D-Md.), who opposed the bill Monday, asked whether the measure would give the Treasury Department the power to deal directly with homeowners facing foreclosure.

Frank answered: "Absolutely."

Edwards then said she'd vote for the bill.

When Rep. John Dingell (D-Mich.) asked Frank whether it would help carmakers, Frank again answered in the affirmative.

Frank's approach is reminiscent of one used by another Democratic leader during an important debate. Lyndon Johnson, as Senate Majority Leader in 1957, staged a similar question-and-answer session during a floor debate over a civil rights bill. It served as a way to help persuade senators watching the floor debate to back the controversial measure. Johnson's ploy was famously recounted by Robert Caro in his book, "Master of the Senate."

During floor debate in the House of Representatives today, House Financial Services Chairman Barney Frank (D-Mass.), who was allotting time for fellow members to speak, took a moment to pledge that serious reforms to the U.S. financial system will be put before the House next year.

"This is not all that needs to be done," Frank said, urging skeptical members to support the Wall Street assistance package up for a vote early this afternoon. "We will be back next year to do some serious surgery on the financial structure."

Some members have called for further reforms, as well has further measures to assist struggling homeowners, saying the package focuses too narrowly on bailing out collapsing Wall Street firms while ignoring the middle class and failing to punish Wall Street greed.

Rep. Spencer Bachus (R-Ala.) said that voting for the bailout bill would prevent a "decline into socialism," contrary to what the bill's opponents have suggested would happen.

"I'm not willing to risk capitalism and a decline into socialism," said Bachus, the ranking Republican on the House Financial Services Committee.

Earlier, Rep. Jeb Hensarling (R-Texas) said he opposed the bill because it risked putting the country on the "slippery slope to socialism."

Rep. Marcy Kaptur (D-Ohio), one of the most vocal opponent of the bill, blasted backers of the bailout whom she feels has rammed the measure through Congress.

"Will you stand up to them?" she asked her colleagues in her floor speech. "This approach, their approach, will not work."

She added that it won't solve the credit crunch or help Main Street and will only serve to benefit Wall Street.

She also voiced concern over the exclusion of House committees from the bill-making process.

"Only one committee was involved... This bill is just an end run around the American people three weeks before the election while this Congress is skittish."

She added: "Pray for our Republic. She's being placed in uncaring and very greedy hands. "

The Hill's Kris Kitto just ran into House Speaker Nancy Pelosi (D-Calif.) as she walked from her office toward the House floor.

When asked if she had the votes for the bailout, Pelosi said, "We've always had our votes."