New Delhi: US lawmakers in the House of Representatives on Monday voted against the biggest proposed government intervention in the US economy since the Great Depression of 1929.
Government officials, treasury chiefs and political leaders from both sides of the political divide thought they had agreed Sunday on the details of a $700-billion rescue plan that would prop up the nation's ailing financial system - and be supported in the House of Representatives.
As it became apparent the vote was lost, the Dow plummeted about 778 points on Tuesday, its largest crash ever. Gold prices surged above $900 an ounce.
On Tuesday morning, Asian markets were trading lower. Hong Kong's Hang Seng plunged 4.48 per cent or 801.31 points at 17,079.37.
Japan's Nikkei tumbled 4.64 per cent or 544.54 points at 11,199.07.
Singapore's Straits Times fell 3.77 per cent or 88.95 points at 2,272.39.
South Korea's Seoul Composite declined 2.56 per cent or 37.22 points at 1,419.14.
Taiwan's Taiwan Weighted was down 5.82 per cent or 344.81 points at 5,584.82.
US President George W Bush had earlier pressured lawmakers, saying the plan was of "tremendous importance to all Americans".
He said it would address "the root causes of the financial crisis" and "restore strength and stability to the US financial system." He also urged lawmakers to pass the bill promptly.The Rescue Bill:
In the span of just 11 days, the Bush administration and lawmakers, seeing ominous warnings in the credit markets, rushed to create legislation to prevent a potential economic meltdown.
The result: A $700-billion bailout package that aims to get financial institutions lending again by letting the US Treasury buy up their troubled assets, most of which are tied to the housing market crash.
After much contentious debate and the addition of several taxpayer protections to the bill, the House scheduled the vote on the legislation Monday and the Senate will follow, likely on Wednesday.
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