Government Bailout Plan a Hot Topic in the Basin

by Michael Stafford
NewsWest 9

ODESSA - A pretty good day on Wall Street on Tuesday despite the fact that congressional members in Washington have so far failed to pass legislation to kick start our economy.

But Congressman Mike Conaway tells NewsWest Nine that both sides are getting much closer to a bailout plan.

Both congressional leaders and the public are angry that a plan hasn't been announced yet.

Conaway hopes the deal will get done this week.

However one idea that's gaining support is raising the federal deposit insurance limits.

The other is to create an incentive for private money to buy up these mortgage backed assets from various companies.

Conaway says the main thing is to build confidence in the lending sector so consumers and other lending institutions can start doing business again.

There are billions in assets that currently are way undervalued.

In the meantime, a key rate that banks charge each other shot higher on tuesday which is more evidence of a tightening of credit availability.