A bill that will bail out some of the nation's most troubled financial institutions is headed back to the House of Representatives. Senators passed the economic rescue bill earlier this evening by a 74 to 25 vote.
The most obvious effect is the price tag: 700 billion taxpayer dollars.
But certain provisions of the bill will have a trickle down effect as well.
More money could soon become available. Financial advisor Bill Schwartz of Edward Jones says, "credit will flow more freely. Not to the extent of the past because we've had too much easy credit. That was the problem."
There also will be an increase in child tax credits.
Along with that, the FDIC will insure up to $250,000 instead of $100,000.
But unlike the bailout, taxpayers will not pay for the increase. David Norris, Executive Vice President of Happy State Bank says, "this will be footed by the commercial banks like ours and others in the community."
But still the question remains on how exactly we, the taxpayers, will pay for the bailout. Schwartz says, "one of two things will happen: taxes will go up or programs will be cut." He says that will most likely depend on which party is elected to the White House.