Bailout shattered, House rejects US financial-rescue plan

The US House on Monday, September 29, voted down the Bush administration`s historic USD 700 billion financial bailout plan, that led to one of the worst days for stocks. This is a sharp blow to all-party efforts, despite repeated warnings about the U.S. heading towards a long-term economic slowdown.

Treasury Secretary Henry Paulson warned on that stressed world markets would reduce credit availability threatening American jobs and livelihood.

Meanwhile, officials are trying to figure out what the next step will be for rescue-related legislation, and an aide in the House speaker`s office said lawmakers are ready to work in a bipartisan way.

U.S. stocks plunged after the news was broken. Dow Jones Industrial Average ended down 777 points, or 7%, to 10,365.

Major Asian indices also reacted to the bailout failure. Japan, South Korea and Australia markets plummeted in early trading on Tuesday.