OT: Market tumbles as House rejects bailout

The stock market took a nosedive Monday afternoon, dropping 700 points as lawmakers in the House of Representatives rejected a $700 billion bailout plan.

The bill, which needed 218 votes for passage, came up 13 votes short, with 205 votes in favor and 228 against. The markets rebounded shortly after the congressional vote, as word emerged that the House would likely reconsider the bill later on.

"The meltdown intensified as U.S. lawmakers voted on a $700 billion financial rescue plan that some were already saying would not be enough to prevent a full-scale financial crisis in many major countries," MarketWatch reported.

CNN reported, "What was supposed to be a 15-minute vote stretched past the half-hour mark as leadership scrambled for support."

Politicians in both political parties were nervous about signing their names to what has been called the biggest government intervention since the Great Depression.

The bailout package's defeat left the Treasury and Federal Reserve Bank scrambling for options.