Wall Street is roiling with the news that venerable financial institutions are in crisis. With the federal bailout of housing lenders Fannie Mae, Freddie Mac and insurance giant AIG, as well as the pending bankruptcy of Lehman Brothers and the buyout of Merrill Lynch, some are calling it the greatest financial crisis in our country since the Depression.
How will the Wall Street woes affect the Main Streets of cities across Idaho, not to mention citizens' savings, and their ability to borrow? Should the government be more closely regulating certain financial transactions, and what are the pros and cons of using taxpayer money to shore up private institutions?
Marcia Franklin talks with three experts about these issues. Bob Maynard is the Chief Investment Officer at the Public Employee Retirement System of Idaho, which manages more than $10 billion on behalf of Idaho's state employees. Dennis Fitzpatrick is the founder, CEO, and president of D.B. Fitzpatrick and Co., Inc., which manages assets of over $800 million on behalf of its private and institutional investors. Professor Don Holley is the chair of the Department of Economics at Boise State University and a former economic analyst and forecaster for Ore-Ida Foods.