Because the bill failed, the market lost $1.2 Trillion in value yesterday. That's not the money of "Wall Street Fat Cats." That's the money in your 401k, your pension fund, and your personal investments (if you're blessed enough to have any).
Sure, House Speaker Pelosi's speech was a little over the top. But to not vote for a bill because of a speech is absurd.
The current financial situation is not the end result of "low income people who bought houses they couldn't afford." Pelosi, like it or not, is right. Our country in this financial place because of the awful financial policies that have occurred over the last eight years.
We continued to ship away jobs to other countries, and provided tax-amnesty holidays that allowed companies to bring back the profits with little or no tax consequence. These were good-paying jobs (and even lower-paying jobs). Those jobs paid people a meaningful wage which allowed workers to afford these homes. When an "anything goes" oil policy caused workers to pay double the amount to be able to get to work, something had to give.
Sure, maybe some homeowners were reckless in buying homes that required them to stretch to afford them. When people used adjustable-rate mortgages (ARMs) they knew the low-interest payments were for a defined time period, but when the economy went south they had no way to refinance. Contrary to what you may have heard, banks were not willing to work with people that were trying to work out their troubled mortgages until a few months ago. Most banks were willing to leave people on the hook at high rates to make their quarterly profit projections. At some point, something has to give and people simply couldn't afford their new house payments which may have doubled or tripled at that point (remember that house payments in the first few years are almost all interest and not principal). This is the story that is not being told by the media and self-serving congresspeople that voted against this bill.
As it stands now, some small business owners cannot get short-term financing to make payroll and buy supplies and inventory. These businesses now have to lay off workers. The student loan market is freezing up. That's not a Wall Street problem, that's an "Our Street" problem. When small banks don't have funds to make basic loans, you're going to feel it. The average American will began to feel the pinch as the 529 college funds that people scraped together for their kids evaporate. Check the balance of your pension fund this morning and get back to me.
Unless Congress gets its act together and passes some form of this bill, you will see the affects of such actions in an even more profound way than you already have. This bill now costs us $520 Billion more than it would have yesterday ($1.2 Trillion Market drop - $700 Billion Bill= $520 Billion). It's simple math.
Stop the posturing and get this done. The country can't afford many more days like yesterday.