Local bailout plan reaction

Experts said a bailout is exactly what we need to see improvements in our area, but not everyone agrees. Others did not see the point in their tax dollars going all the way to New York.

After Congress said no to the $700 billion bailout, the ensuing drop in the stock market could be seen on the walls at UNCW’S financial lab Monday. Residents were not the only ones concerned with the proposal.

Joann Hinson is skeptic of the plan. “I feel like it would only help the rich.”

Despite the skepticism UNCW Executive Professor of Economics and Finance, Thomas Simpson, said the bailout would actually help local residents. “From the standpoint of job prospects, for example, if something isn’t done, the implications for the economy are not very favorable and so that would mean a lot of people could be out of work.”

Others are concerned with bank buyouts, like Citigroup taking over Wachovia. “I know too many people that worked so hard and they lost their home. They couldn’t make the payment, why? Because there was nothing there for them.” said Susan Miller, another bailout skeptic.

But Simpson said a bailout should only help those in need of money. “If this doesn’t happen and credit becomes even more difficult to get, then the implications for the economy and for job prospects are going to get worse.”

Residents believe banks and other lenders aren’t going to hand out loans easily. “You put your hand in your pocket and you hold onto it. I think that’s what’s going to happen. I don’t think that companies are going to continue to loan money, that’s what got us here in the first place.” said Phil Denston, a concerned taxpayer.

They feel individuals should see more of a benefit from the billions of dollars.

Professor Simpson believes we will see a plan approved by the middle of the week. He said because it is an election year, representatives want to approve the bailout before people head to the polls.