Furman Economist: Most Won't Be Directly Impacted By Economic Crisis

A Furman University economist had some good news for Upstate residents on Wednesday.

News Channel 7 reporter Kristen Nastasia told us that the economist says most of us won’t be directly impacted by the looming economic woes around the country.

We found out that the banks most of our users bank with are fine and protected.

Those with lots of real estate, stock and people with lots of money invested in one asset will be most impacted.

Watch wspa.com for updates on this story through the day.

Nationally:

Find out how to protect your money.

FBI Probing Companies For Wrongdooing In Financial Collapse
The companies at the center of the financial meltdown are now under investigation for fraud.

Federal investigators are looking into whether executives at mortgage giants Fannies Mae and Freddie Mac insurance giant AIG and investment bank Lehman Brothers may have broken the law as their companies fell into debt.

“Up to now, the Justice Department has said no to a national fraud investigation. But pressure is building for the government to hold corporate executives accountable for the mortgage meltdown that could cost taxpayers close to a trillion dollars,” Alexis Christoforous, of the New York Stock Exchange said.

Sources close to the FBI say it's early in the investigation. So far, no individuals have been named. And they predict this will be a tough case to prove.

As the hearings on Capitol Hill show both lawmakers and the public are growing angrier by the day about the corporate mistakes that have put the American economy at risk. And either by capping executive pay or by launching criminal investigations, the government could be looking for payback.

Fed Chairman: Growth Hinges On Stabilizing Markets
WASHINGTON (AP) - Federal Reserve Chairman Ben Bernanke has given Congress a grim assessment of the state of the economy, saying business growth hinges on stabilizing the troubled financial markets.

Bernanke made the statement as part of a review of economic prospects that the Fed chief occasionally gives to the Joint Economic Committee of Congress. He says in remarks prepared for Wednesday's appearance that the Fed stands ready to "act as needed" to keep things on an even keel.

Bernanke and his Fed associates are fighting the biggest financial debacle since the Great Depression.

Bernanke: Fed will 'act as needed' to help
WASHINGTON (AP) - Federal Reserve Chairman Ben Bernanke says the worsening financial crisis could prove a major weight on U.S. business growth and pledges to "act as needed" to brace the wobbly economy.

Bernanke and his Fed associates are fighting the biggest financial debacle since the Great Depression. On Wednesday, the Fed chief faces a second straight day of tough questioning on Capitol Hill about the Bush administration's proposed $700 billion bailout plan.

Lawmakers have voiced skepticism about the plan, which is aimed at shoring up troubled financial institutions and markets.

Goldman raising $5 billion in public stock offer
NEW YORK (AP) - Goldman Sachs will sell $5 billion worth of common stock to the public as part of a capital-raising plan that also includes Warren Buffett's investment of at least $5 billion.
Goldman Sachs Group Inc. says it has priced the offering of 40.65 million common shares at $123 apiece.

The offer is double the amount Goldman said Tuesday night it would raise as part of a plan to boost its capital cushion in the wake of the bankruptcy of fellow Wall Street firm Lehman Brothers.

Warren Buffett's Berkshire Hathaway is buying $5 billion in preferred stock and will receive warrants to purchase an additional $5 billion worth of common shares over five years.

Bush: Robust financial bailout expected
NEW YORK (AP) - President Bush says that despite congressional debate over his proposed $700 billion financial bailout plan, "a robust plan" will be passed.

The president spoke Wednesday before a meeting to discuss free trade with leaders of other Western Hemisphere nations. It was one of his final events in his three-day trip to attend the U.N. General Assembly.

He said the leaders can see clearly that the legislative process in the U.S. is "give and take."

Bush added: "I am confident when it's all said and done, that there will be a robust plan."

Schumer, DeMint spar on bailout program
WASHINGTON (AP) - Sen. Charles Schumer said Wednesday he believes Congress must act quickly to rebuild the crumbling financial system but that lawmakers must have a strong supervisory role in how the $700 billion bailout program is run.

The New York Democrat said that there if there are provisions for a return of money in connection with the absorption of bad debt at various financial institutions, "it should go to taxpayers before bondholders, shareholders and executives."

Schumer is a member of the Senate Banking Committee. He also said on NBC's "Today" show that "we have to have somebody overlooking the Treasury secretary's shoulder."

Sen. Jim DeMint, a South Carolina Republican, differed with Schumer, saying Congress should resist the Bush administration's pleas for the legislation. He said, "The government broke it. I don't trust them to fix it."

Web resources:
What does John McCain think we should do for the economy?
What about Barack Obama?

South Carolina leaders are split on the bailout. read more