The $700 billion bailout bill passed the U.S. House of Representatives Friday afternoon, and Rep. John Peterson, R-Pa., who represents State College, voted for the legislation.
Peterson wrote in a press release that voting for the bill was among "the toughest votes of my legislative career." The legislation will put capital into the economy, which would grant consumers the opportunity to regain confidence in the market, he wrote.
"The legislation that I supported today, and was adopted by the House of Representatives, is not perfect and by no means will solve the financial crisis over night," Peterson wrote.
The House vote was 263-171, the Associated Press reported, and the stock market continued to shift as the legislature went about its business. The Dow Jones Industrials were up more than 200 points at the time of the vote, fell later and continued movement throughout the afternoon, according to the AP. Sens. Arlen Specter, R-Pa., and Bob Casey, D-Pa., voted in favor of the bill when the Senate voted Wednesday.
Jim Miles, professor of finance, said the bailout could "temporarily stem the panic" that has taken hold of the stock market, but the long-term results remain to be seen.
"I don't think anybody can really be sure exactly what it will do," Miles said.
The government is buying "toxic mortgages," or high risk mortgages, and the outcome of this practice could turn out well or badly, he said.
"The government is taking a big risk," Miles said.
