By Camaron Abundes
ODESSA- Billions of tax dollars are on the line and lawmakers are tossing around buzz words like Main Street and Wall Street in an attempt to flush out an economic rescue plan. In the Permian Basin one local economist says he still has faith in the local banks.
"We're fortunate here in the Permian Basin. We have some very healthy local banks but I think it will help make it (the economic bailout) a little bit easier for people to get mortgages, car loans, for small businesses to get loans to prosper and grow. We may see some fall out, but not as significant because we have a strong local base," economist Ray Perryman, said.
Perryman says even though 700 million dollars amounts to $2,300 dollars for every single American citizen, he says the money will come from loans and the sale of assets not directly from the tax payers wallet.
"The plan is to hold the assets and resell the assets and in the process most of this money will come back to the treasury, perhaps even make a little profit," he said.
Perryman says the local financial foundation is strong, but a bailout is still necessary. He hopes the government will act quickly to buy up all the bad loans.
"It's very important for an economy to function, you have to have liquidity. You have to have the ability for people to borrow money and for people to use that money to invest and buy things," Perryman said.
In the Basin, a credit crunch like the current financial meltdown is all too familiar.
"Last time there were a lot of people that lost their homes, and got into a lot of other problems, so one way or the other you're going to pay for it," Resident Paul Frost, said.
"This is the private sector, they made the mistake, and they're basically not paying for it," Resident Scott Shor, said.
Perryman is optimistic the U.S. economy will rebound by early next year. He says the lesson investors can take from this meltdown is not to assume once something goes up it will stay up. He says the lesson for lawmakers is to find a happy balance between too much and too little regulation.
"What you would hope we learn from this situation and the dot-coms before that, and the Syndications before that and the tulips in Holland in the 1630's before that, is not to get into this speculative binges under the assumption things will always go up, because it simply doesn't work that way," he said, "as a country, as a society, as a World we can't break ourselves of that."