Local Residents React to Wall Street

Jessica
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The sudden downfall of Lehman Brothers and the uncertain future of American International Group have some local residents questioning their own financial fate.

Jessica Forres reports

LISTEN TO STORY 1 THAT AIRED ON WAMU RADIO

As AIG tries to raise billions of capital to avoid meeting the same demise as Lehman Brothers, Shenaaz Shaikh sits on a concrete bench outside of Chevy Chase Bank…where she works in Bethesda, Maryland.

WHAT’S GOING TO HAPPEN TO THE MIDDLE CLASS PEOPLE? I MEAN WE ARE ALL IN AMERICA, WE ALL HAVE TO SURVIVE, WE ALL HAVE FAMILIES. WHAT ARE OUR KIDS GOING TO HAVE IF WE AREN’T GOING TO HAVE ANYTHING.

Robert Losey is an Associate Professor of Finance and Real Estate at American University. He says the future of AIG…one of the largest insurers in the world… is still uncertain.

THE GOVERNMENT TOOK A STAND WITH THE INVESTMENT BANKING FIRM THAT JUST WENT BROKE AND SAID WE’RE NOT GOING TO BAIL THEM OUT, WE’RE NOT GOING TO GIVE THEM ANY MONEY. THE GOVERNMENT MAY DO THAT WITH AIG OR IT MAY PROVIDE SOME ASSISTANCE, IT REMAINS TO BE SEEN BUT THEY AREN’T GOING TO BAIL EVERYBODY OUT, IT’S QUITE OBVIOUS. AND IN MY VIEW THAT’S A GOOD THING.

Though Shaikh is not a client of AIG…she is still concerned.

YOU NEVER KNOW WHO IS NEXT, IT’S VERY SURPRISING.

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As American International Group tries to raise billions of dollars to avoid meeting the same demise as Lehman Brothers, some local residents say they aren’t concerned about the future of their finances.

Jessica Forres reports…

LISTEN TO STORY 2 THAT AIRED ON WAMU RADIO

Standing on the red brick sidewalk in downtown Bethesda, Nick Franze talks about the recent events on Wall Street.

I WORK IN THE FINANCIAL SERVICES INDUSTRY SO YOU KNOW WE’RE GLUED TO THE TV TRYING TO FIND OUT WHAT’S GOING TO HAPPEN NEXT.

But he isn’t worried about his personal finances…

I’M NOT TOO WORRIED. I MEAN I DON”T LIKE LOOKING AT MY STATEMENTS BUT IT’S HOPEFULLY GOING TO COME BACK.

Neither is Jason Brown…

IN MY PERSONAL OPINION ONLY, THE MARKET IS SOMEWHAT HANGING TOWARDS A RECESSION BUT IN THE LONG TERM IT WILL REBOUND.

Robert Losey is an Assoiciate Professor of Finance and Real Estate at American University. He says -historically- people who’ve taken their money out of the stock market after a major drop haven’t faired as well as those who’ve weathered the storm...

THERE HAVE BEEN EXCEPTIONS TO THAT, THE GREAT DEPRESSION WAS AN EXCEPTION, YOU WOULD’VE BEEN MUCH BETTER OFF IF YOU SOLD VERY EARLY AND THEN WAITED FIVE OR TEN YEARS TO GET BACK IN.

Stephanie Giroux... the Chief Investment Strategist at TD Ameritrade...offers investors some advice.

I’D SLEEP BETTER AT NIGHT KNOWING THAT MOST OF OUR CLIENTS HAD EXPOSURE AT LEAST SOME EXPOSURE TO STOCKS, BONDS AND CASH. AND I THINK THAT’S THE MAIN MESSAGE I WANT TO GIVE TO PEOPLE . BECAUSE I THINK A LOT OF PEOPLE MAY ONLY OWN EQUITIES.

Jessica Forres WAMU 885 News

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