Impact of Bailout in Mississippi

By: Tametria Conner Email
By: Tametria Conner Email

East Mississippi is all right according to financial analysts. They say this bailout crisis won't affect us too much, but there likely will be adjustments.

"We are a credit nation," said Sr. Jack Tucci, business chairman of Mississippi State-Meridian campus.

Tucci said locally it may be more difficult to obtain a loan, as requirements will soon become stricter. You may have to dish out more money for down payments, as those percentages are expected to increase as well.

"The interest rates may go up a little bit," said Tucci. "Your ability to get the lower rates may be limited. And what they may do is increase your credit score requirement to obtain the same loan."

Dr. Tucci says, even if you have a good credit score, soon you may be slapped with a higher interest rate.

"You will see that even if you have a good credit rating of 600, the interest rate might be a percent, percent and a half more than it would be for someone at 650 or 680.," Tucci said.

He said Mississippi bankers have always been conservative in their lending practices, so prices of our homes will remain steady. But Tucci said that conservative practice may become even more restricted.

"So it probably will be more difficult, starting now through the next year, before you see an easing of credit restrictions," Tucci said.

Congress said it will remain in session until a bailout plan gets a vote. Just how effective that plan will be? Tucci said he likes to think of it as a band-aid over a wound.

"$700 billion is a big band-aid on a big wound," said Tucci. "Doesn't mean that we're not still going to be sore from the wound. The band-aid, what it does is keep it from getting infected again and getting worse."


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