WBTV 3 News, Weather, Sports, and Traffic for Charlotte, NC-How will the Congressional bailout affect you?

How will the Congressional bailout affect you?

By Sharon Smith

CHARLOTTE, NC (WBTV) - Congressional leaders are working behind the scenes to craft an alternative bailout bill.

One of the proposals is raising the FDIC's deposit insurance from a limit of $100,000 to $250,000.

Congressional leaders need to attract about a dozen votes to avoid another defeat.  It will be at least Thursday before lawmakers can vote on a new piece of legislation.

Finance experts say the bail out bill is like bad medicine. What doesn't kill us will make us better.  It's a tough sell to regular people.

"I hope they come back with a smaller number, I think 700 billion shocked everyone," said Tracy Barmore, general manager at Dilworth Packing.

"My gut reaction is, it's not for the average American," said Charlotte newcomer, Fullas Abebe, who echoes how a lot of people feel.

But Dr. John Connaughton, a UNC-Charlotte economist, says Congress must act now.

Credit lines are frozen, making it tougher to finance a car or buy a house.

Small businesses are suffering, too. A national poll said more than 42 percent have cash flow problems.

They have concerns about buying inventory and making payroll because the banks aren't lending.

Dr. Tony Plath, a business finance professor at UNC-Charlotte, says the bailout protects real, everyday jobs not all the Wall Street big wigs.

He says it's crucial for middle America.

Even though Barmore isn't a big fan, as a business owner, he is looking at the bigger picture.

"If I need to take out a loan to by Christmas inventory, and it's not there, I'll be in a lot of trouble."

Congresswoman Sue Myrick, who voted against the bill Monday, said she expects Congress will work through the weekend to craft a new plan. She'd like to see the $700 billion bailout cut in half, along with more accountability.