Local Bailout Plan Reactions
By: Julie Musgrave
Updated: October 3, 2008
After a 'no' vote earlier this week, the House of Representives passed the economic bailout plan after some revisions in the Senate. The vote was 263 to 171. The original plan of course was revised earlier this week. The bailout essentially will mean that the Federal Government will buy out 'bad' loans, then re-sell them when the market is better.
Now it will fall on the taxpayers at first, but many experts tell us that in the end, you will see that money back. The revised plan has worked in some stronger protection for small businesses among other things.
Here in lubbock, financial advisor Amy Williams says her company Edward jones, is pleased the bailout was passed. She says after all of this is over, people should come out healthier and more concsious of their finances, and of course -- more confident in capitalism.
"Business is still transpiring, you go up and down the street and you see people shopping and going about their daily lives. You have to have money in the bank to get a loan now, but frankly that's how it should have been all along. We really loosened up the reigns on money, and we extended credit probably in places that we didn't need to. So things are going to go back to way things used to be," says Williams.
Williams expects the market to recover in about 18 months. She also adds this is not the time to change any of your long-term investments, so stick with what you have right now and you'll stay on track with your goals.
