September 11, 2009

ITHACA -- It's been a year since the financial meltdown started on Wall Street.
     A lot has happened since last September, but one economist says we're not out of the woods yet.
     “We were teetering on the brink of what could have been another great depression, and we're not there now,” said Cornell University professor Steve Kyle.
     Kyle says the economy is still going down, just at a slower pace.
     What went right since last September?  Kyle says the bailouts and stimulus package prevented the meltdown from spreading further, but…
     “There’s been no regulatory reform.  And that's worry-some,” said Kyle.  “What's to stop an insurance or financial executive from doing the same thing?"
     Kyle says the Obama Administration and Congress need to take care of that, but it probably won't happen while there's still a healthcare reform debate.
     Kyle says what's happening in our region is reflective of what's happening around the country.
     “There are still foreclosures happening, there are still businesses going under,” he explained.
     Bad news is Kyle thinks unemployment will reach 10% soon.
     His advice...
     “If you have a job, keep it.  If they offer you a job, take it and be grateful.  And don't borrow more money than you have to."
     Professor Kyle still thinks Congress should pass a second stimulus package.