The following is a Statement by Investment Research Expert Martin Weiss: "The failure of the House to pass the $700 billion bailout bill is injecting a new dose of uncertainty in to the stock market".

However, even before this news hit the market, investors in the credit markets had already rendered their verdict of disdain and distrust in the legislation.

The telltale symptom: the spread between short-term bank lending rates like LIBOR and short-term Treasury rates widened by a full quarter of a percentage point this morning, denoting a worsening crisis of confidence in the U.S. government's ability to end the debt crisis.

Looking ahead, whether the U.S. can ultimately pass the legislation or not, the consensus opinion of the financial markets seems to be consistent with the conclusions in our report submitted to Congress last week entitled "Proposed $700 Billion Bailout Is Too Little, Too Late to End the Debt Crisis; Too Much, Too Soon for the U.S. Bond Market." The report also details which banks and thrifts are at greatest risk of failure, with 1,479 U.S. banks and 158 U.S. thrifts at risk, or 41 times the assets of banks on the FDIC's list of troubled institutions.

Weiss proposes that Congress shift its focus and resources away from saving imprudent institutions and toward protecting prudent individuals by fortifying existing safety nets such as the FDIC for depositors, SIPC for investors and guarantees on insurance policies.