Local Reaction to Govt. Bailout

September 28, 2008 12:00:00 AM PDT
Central valley residents are concerned they won't see a dime from the governments plan bailing out troubled financial institutions with a seven-hundred billion dollar loan.Gordon Sturgeon, Clovis, says "I think they should be helping out more of us. I mean these companies are big money companies. I mean they should be taking care of themselves. They're the ones that got themselves in this situation."

Arthur Lopez, Clovis, says "These big companies with millions and billions of dollars are getting bailed out but the poor people down here they're losing everything."

Fresno economist Henry Nishimoto says residents need to look at this bailout as a positive investment. "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."

That means financially troubled banks would have no money to give to their customers for car loans, home loans or even money at ATM's. The most recent example of this collapse is Washington Mutual.

But valley congressman Devin Nunes says the bailout plan is an overreaction. He's promoting raising the FDIC insurance level. "So right now people are only insured up to 100-K. I'd like to see us go up to 500-thousand. That would take care of 99% of Americans," says Nunes.

Nunes says he won't vote for the plan until better language is adopted protecting tax-payers. "My main concern is to make sure I protect my constituents who are tax-payers so we don't have a big giveaway program to people that live in New York, Boston, Charlotte to all those big banking centers," says Nunes.

Nunes wants people here to feel confident money deposited in banks today will be there tomorrow. He says it will probably be several more days before a vote is made on the bailout plan.

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