NBC NATIONAL NEWS — A bill to keep government running through mid-November passed the house by 16 votes.
It includes nearly 3.7 billion dollars in disaster relief, paid for by cuts in clean energy programs Democrats wanted.
House Republicans seem confident, "There is no threat of a government shut down," reported House Speaker John Boehner, (R) Ohio.
But the bill appears to be dead on arrival in the Senate. "The American people are fed up with this strategy of shutting down our government and threatening to do it time and again," said Senator Dick Durbin, (D) Illinois.
If the two can't agree before the house leaves this afternoon, the government may run out of money.
Analysts say this gridlock is exactly what spooked Wall Street Thursday. At one point, the Dow Jones Industrial Average tumbled 500 points, "That is not reassuring, and that sends market to the downside when they see that there's basically no compromise going on, said Sue Herrera/ CNBC
"Washington is sending some confusing signals out. We don't know what the dollar is worth day-to-day," lamented James Lucier of Capital Alpha Partners, LLC.
The sell-off continues in Asia this morning. Stocks tumbled in Sydney, Hong Kong, Taiwan and South Korea.
Pent-up fear, analysts say, raising concerns about a second recession.
The Federal Reserve shifted 400 billion in funds to drive down interest rates, but it wasn't enough to boost investor confidence.