Valley Congressional Leaders Disagree over Bailout

September 29, 2008 12:00:00 AM PDT
Two valley congressional leaders are at odds over the proposed bailout.Both Congressmen Jim Costa and Devin Nunes agree the failing economy needs major help. But both men see different ways on how to improve it.

Some Valley residents doubt the federal government's commitment to helping out private citizens during this tough economic time. Some residents said they especially don't see a $700-billion dollar bailout helping them in any way.

"They wouldn't bail me out. But I realized it's one of those things you got to do when you go to do it," said David Wiles of Clovis.

"The poor people down here they're losing everything because nobody's bailing them out," said Arthur Lopez of Clovis.

But local economist Henry Nishimoto offers that if financial institutions don't receive this bailout money, and soon, banks wouldn't be able to offer car loans, home loans and even money at ATMs. "You have to look at the alternative. If the government did nothing and the financial sector were to collapse then we would all be hurting."

Yet Valley Democratic Congressman Jim Costa supports the newly revised proposal helping troubled financial institutions. "I've not spoken to many members who think this is a wonderful plan or proposal," said Congressman Jim Costa (D) California. Costa said a system of checks and balances and protection for tax payers was a key selling point. "The first goal is to protect tax payers and require that they be paid in full and with the changes we've made in the president's proposal we do just that."

Valley Congressman Devin Nunes disagrees with the proposal altogether. "I'm very concerned about us bailing out Wall Street." Nunes is not convinced he can support this plan. He wants to look at other ways to help financially troubled businesses while protecting the tax-payer from any risk. Nunes proposes raising the FDIC Insurance limit from $100k to $500k. "The concern is, 'will my constituents have a place to put their money?' and if we up the FDIC limit people will be comfortable to put money in the local banks.

Nunes said he's not certain if there will be enough votes for the plan to pass Monday. If that's the case, due to Jewish holidays, Thursday is the earliest a vote would be considered.



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