Wilson: Loan plan necessary
By MICHAEL SCHULER, Times Leader Staff WriterArticle Photos
U.S. REP. Charlie Wilson (D-18th) was in Bridgeport Wednesday, explaining his stance on the latest proposal to loan hundreds of billions of dollars to financial institutions, saying the loans are necessary to keep small businesses open and to keep lines of credit available for consumers.
Wilson met with the press and the public during a question and answer session at Rhodes Florist, where he was joined by the owner of the business, Bill Talik, who said he relies on short term loans to purchase supplies to get his business open.
"It's a standard small business practice to have a credit line established during certain parts of the year. When business dictates, you have to put out a lot of money for supplies to carry you through the holidays," Talik said. "If you don't have a credit line, you're going to have to find other sources to get that supply and a lot of times it's going to cause you to spend more money and thus raise prices on the customer. To keep it simple we need a credit line for small businesses."
According to Wilson, if the financial package isn't approved, it will be more difficult for people to get loans to buy a home or for students to get loans to go to college, while also having a negative effect on jobs.
"We are trying to move in every direction we can to help supply credit, so that there is not a freeze," Wilson said. "It is not just about Wall Street, it's about Main Street."
But the new plan differs significantly from a bill that was narrowly defeated in the U.S. House on Friday, Wilson said.
That bill would have lent $700 billion to financial institutions. The new plan would lend up to half that amount with an initial $250 billion loan to be injected into the financial system, and an additional $100 billion, if needed.
He then said any additional loans beyond that $350 billion would have to be approved by new legislation.
There would also be a big change to the maximum amount a deposit will be insured for by the Federal Deposit Insurance Corp. Currently, the FDIC insures up to $100,000 in an account. The new maximum would be $250,000.
"There are arguments for and against it. It's a very controversial vote, but I feel like it's the right vote and the right thing to do," Wilson said. "So we need to move forward and see that the consequence of doing nothing is just not an option. We are going to guarantee peoples' pensions. We are going to guarantee people can get a line of credit to make sure people can get student loans, home loans and a loan to buy a car."
The bill also would give the government the option of purchasing preferred stock and would prevent executives from receiving "golden parachutes, and would also increase oversight of the industry, Wilson said.
"We are trying to be as careful and diligent with taxpayers money as possible," Wilson said.
But Wilson also said the loan package hasn't been an easy sell to the public.
The congressman said between 80 to 90 percent of those who have contacted his office have voiced their opposition to the loan, but said many of those same people have changed their opinion since then.
"Now, it's about 50-50," Wilson said. "I think the more that people learn about it, the more they will see it's the right thing to do."
But at least one women who attended the event questioned the proposal, saying there was a promise of more jobs North American Free Trade Agreement that never materialized.
Wilson said that he also disagrees with NAFTA or any other free trade agreement, but also said that failing to approve the loan could send the nation into a recession.
Wilson said he will be back in Washington today, when the House of Representatives is expected to debate the issue.
Schuler can be reached at shoe@timesleaderonline.com.
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demman
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10-04-08 5:55 PM
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Clueless people....the bailout bill is not perfect, all agree. But, the financial markets would have melted down. Grab a first year Economics book and read. Should the US Congress have HAD to pass a bill like this? No, of course not, but maybe now people hopefully live within their means. Let's cut some more Democrat handouts and make people accountible. By the way "Thoughtful", Charlie Wilson is a member of NRA, a coal liquification plant is being built in his region, he's pro-life and a small business OWNER!
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Thoughtful
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10-03-08 1:07 AM
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The Democrat Party is clearly anti-coal. Look at the words of Al Gore, Harry Reid, Joe Biden only a few days ago. Let's challenge Charlie Wilson to strongly oppose his leadership, set out and be first for the Ohio Valley. Trust me, The Democrat Leadership will do all in their power to walk away from coal. United Mine Workers speak up. Families speak up, those that support energy independence speak up.
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Thoughtful
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10-03-08 12:39 AM
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Charlie Willson is now reporting to Nancy Pelosi, Harry Reid, Barney Frank, Chris Dodd. These people are so out of touch with the Ohio Valley. Anti gun, anti Coal, anti life, anti business. Wake up Search for the best candidates regardless of party
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SonsOfLiberty
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10-02-08 7:29 PM
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Charlie Wilson is full of fecal matter and should be tarred and feathered for whoring himself out to special interests. The only rule book he and the other crooks inside The Beltway are supposed to use is the US Constitution.
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SphinxRising58
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10-02-08 6:52 PM
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Wilson says it is " the right thing to do ", but by whose standards ? Certainly not the tax payers ( as they have voiced their opinion clearly ), but people like Wilson hears only what they wish too, & that being whatever will keep them in the good graces of all them people that contribute to him & others pushing for government welfare to the people who made their own mess & want us ( the tax payers ) to clean it up for them so they can do it again down the line. You know as well as I do if I took the money we have for rent, food, clkothing & whatever other bills we face each month & blew it at the local dog track, no one would bail me out because I would have been the one that caused my own mess. The same goes for this financial bailout, as these people knew the risk, gambled & lost it all, so why should anyone clean up after them ?
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UNCOMMONSENSE
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10-02-08 5:20 PM
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I like this lame example of a small business needing a LOAN in order to buy replenish inventory! What ever happened to using your PROFFITS to purchase this inventory? Ahhhhhh the good ole days! And no matter how much politicians and the media try and SPIN these BAIL OUTS, the people will NEVER get behind them and it will career ending for MANY who vote AGAINST the American people!
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reasoh
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10-02-08 1:59 PM
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People have not changed their minds, seems to be a political talking point. A different bill now after the Senate loaded it up with pork millions for companies that do business in American-Somoa? Hey Pelosi's husband owns a company with a plant in American-Somoa. Millions for wooden arrows? Race tracks? Cong.Wilson this bill is an embarrassment to everyone that goes to work everyday and tries live by the rules!! Hold a hearing question Raines Gorelich,Dodd,Frank and prosecute those who falsified the books put them in a cell next to Enron and Worldcom excecutives
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