Greenwich Roundup: 09/29/08 Hearst Media In In The House - Greenwich Residents Are Once Again Shocked As The Greenwich Citizen Is Updated Again. Way To Go Hearst !!!!!

Monday, September 29, 2008

09/29/08 Hearst Media In In The House - Greenwich Residents Are Once Again Shocked As The Greenwich Citizen Is Updated Again. Way To Go Hearst !!!!!

Sacred Heart economics professor Lucjan Orlowski, Ph.D., foresees a "long-lasting mild recession."

Greenwich Braces for Wall Street Fallout, Bailout

Shays: Halt Golden Parachutes

By Erin E. Harrison

First it was Bear Stearns, then Fannie Mae and Freddie Mac. Then came Lehman Brothers, Merrill Lynch and American International Group Inc.

It's unclear how the latest meltdowns on Wall Street will afflict the local economy in the long term, but two significant impacts stemming from these latest major financial crises - employment and tax revenue - are already shaking Greenwich and the entire region.

"Thousands of jobs in New York have been lost and the impacts of that will obviously be felt in Fairfield County and Connecticut," said Lisa Mercurio, director, Fairfield County Information Exchange at the Business Council of Fairfield County.

"This is a major financial crisis, with impacts on employment and on the ability to buy things such as real estate, retail, etc. As companies are bought and merged into others, there will be redundancies and jobs losses." .....

....Mary Ann Morrison, president and CEO of the Greenwich Chamber of Commerce, said that although Greenwich businesses have already been hit by the weakened economy, it's too premature to predict how the latest financial breakdowns will impact the town in the long term.

"I see Greenwich businesses being very prudent, very cautious and very observant for what has happened through all of this year," Morrison said. "They are seeing fewer people come through the door, the cash register not ringing as much and maybe not as many zeros behind the sale." Morrison added, "Most business owners see this as a dip in the economy; some places have closed the doors, but there were lot of factors involved, not just one." ....

... U.S. Rep. Christopher Shays, R-4, senior member of the Financial Services Committee, earlier this week called for executive compensation limits for companies that will be assisted by the Department of Treasury proposal, which is requesting from Congress the authority to purchase troubled assets from financial institutions in order to promote market stability, and help protect American families and the U.S. economy.

"There needs to be accountability for the investment managers and executives who made poor management decisions," Shays said. "Preventing golden parachutes and limiting executive compensation packages at firms that choose to participate seems like a good place to start. This package is about protecting taxpayers' retirement funds, pension plans, college savings and other investments by ensuring continued liquidity in the marketplace, not about bailouts for the people who got us into this mess." ....

...."There will be a significant need to retrain and upgrade their skills," he said. "This has widened from merely a subprime mortgage crisis to a broad, systemic credit crisis."

Although the breakdown of Wall Street has spawned an onset of panic in the region, Morrison said the next few months will dictate how the local economy will be directly affected.

"I think this has got to play out a little bit more. The Christmas holiday sales will be a key indicator in how bonuses will impact shopping. By year-end, the state of Connecticut could be impacted gravely."