The United States House of Representatives today voted against the much ballyhooed $700 billion financial rescue or “bail out” plan (228-205), which would have given the government the authority to purchase bad mortgage loans and other poor performing assets from major lenders nationwide.

It was a major move that proponents felt was required to resuscitate a flagging national economy and “unclog” the financial system.

However, news of the defeated plan sent the stock market into a nosedive, triggering the Dow Jones industrial to dip a staggering 778 points.

Major banks such as Washington Mutual have already failed primarily because of bad home loans that were never repaid. And others such as Wachovia are in distress, meaning that the more bad news could be on the horizon if something is not done soon to help right the economic ship.

In short, if lenders don’t have money to loan — or are concerned that loans will never be satisfied — Americans will find it difficult if not impossible to finance homes, cars, college educations and other big ticket (albeit essential) expenses.

Even though the most recent version of the plan was defeated, it appears that legislators on Capitol Hill are still set on working toward an acceptable resolution that will get the United States economy chugging again.

Let’s just hope it’s sooner rather than later.