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Experts explain impact of Wall Street’s struggle
  
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By VAL CLIFTON
Lawmakers work in Washington to fix the financial debacle while Wall Street traders hold their breath in anticipation of a bail out that will save their precious stocks, and most likely their jobs.
But will it work?
Jeff Kanaly, Vice Chairman and Chief Financial Reporting Officer of Kanaly Trust, said historical failures could help predict future outcomes.
‘The best thing is to keep in the back of your mind that there have been a number of financial programs that didn’t do well because of lending standards,” Kanaly said. “There is a ripple affect throughout the entire economy when these institutions go bankrupt.”
The hefty bail out, he said, is an attempt at aiding commerce in continuing to run smoothly.
“They are trying to ensure that commerce does not suffer,” Kanaly said, “and are trying to get out of this situation as quickly as possible and return prosperity and growth to the U.S. economy.”
In the mean time, Americans can most likely look forward to a slower economy.
“From the long-term stand point, it will work itself out and the U.S. will recover,” Kanaly said. “You just have to be patient with the fact that everything isn’t going to correct itself overnight.”
He advises investors worried about profit loss to hold on to their stocks because their return will eventually be greater. During a slow down, however, is a good time to invest.
“The point to be made is that (the lag in the economy) is short-term,” Kanaly said. “If you’re a long-term investor, don’t worry about it.”
Nancy Gardner, Certified Financial Planner and executive vice president at Tanglewood Wealth Management, said consumers are partly to blame for the financial mess.
“A lot of people share the blame in this,” Gardner said. “But even so, we have to get beyond our feelings about this. We don’t want to cut off our nose to spite our face.”
She said the passage of a rescue passage is pivotal to the success of our economy, but if approved, recovery will still be much slower than in past recessions.
However, she predicts that it may begin to perk up in the spring, at which time she sees the housing market bottoming out.
In the mean time, people who are over extended with credit won’t be able to contribute to the economy, and with the high cost of gas and rising rate of unemployment, consumers won’t be able to spend as freely.
But will it work?
Jeff Kanaly, Vice Chairman and Chief Financial Reporting Officer of Kanaly Trust, said historical failures could help predict future outcomes.
‘The best thing is to keep in the back of your mind that there have been a number of financial programs that didn’t do well because of lending standards,” Kanaly said. “There is a ripple affect throughout the entire economy when these institutions go bankrupt.”
The hefty bail out, he said, is an attempt at aiding commerce in continuing to run smoothly.
“They are trying to ensure that commerce does not suffer,” Kanaly said, “and are trying to get out of this situation as quickly as possible and return prosperity and growth to the U.S. economy.”
In the mean time, Americans can most likely look forward to a slower economy.
“From the long-term stand point, it will work itself out and the U.S. will recover,” Kanaly said. “You just have to be patient with the fact that everything isn’t going to correct itself overnight.”
He advises investors worried about profit loss to hold on to their stocks because their return will eventually be greater. During a slow down, however, is a good time to invest.
“The point to be made is that (the lag in the economy) is short-term,” Kanaly said. “If you’re a long-term investor, don’t worry about it.”
Nancy Gardner, Certified Financial Planner and executive vice president at Tanglewood Wealth Management, said consumers are partly to blame for the financial mess.
“A lot of people share the blame in this,” Gardner said. “But even so, we have to get beyond our feelings about this. We don’t want to cut off our nose to spite our face.”
She said the passage of a rescue passage is pivotal to the success of our economy, but if approved, recovery will still be much slower than in past recessions.
However, she predicts that it may begin to perk up in the spring, at which time she sees the housing market bottoming out.
In the mean time, people who are over extended with credit won’t be able to contribute to the economy, and with the high cost of gas and rising rate of unemployment, consumers won’t be able to spend as freely.
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