Tulsans Work To Understand Economic Downturn

By Jeffrey Smith, The News On 6

TULSA, OK -- Many people in the Tulsa area are struggling to figure out what's been going on the last few weeks.  The economy still has them scratching their heads   The big question is how come everything seemed just fine a few months ago and now, all of a sudden, Wall Street institutions are collapsing left and right?

People are worried if their retirement savings are safe and, for the short-term, experts say they should be.

That bell on the New York Stock Exchange is 1,200 miles away, but it's ringing loud and clear in Tulsa.

"Well, you gotta save them. I mean, we got ourselves in it, right?" said child welfare specialist Naomi Kelly.

Lehman Brothers is bankrupt.  Merrill Lynch was sold.  And, AIG got bailed out.

"I really don't understand all of it.  I haven't watched it real closely.  But, I do know that no one's here bailing me out," said Camille Peck of Wagoner.

"I think they have to be concerned about interest rates rising as inflation rises.  It'd be a nice time to reduce their debt," said Steve Seib with TU's Department of Economics.

The head of the TU's Economics Department says there's reason for concern at the ground level.

"Almost everybody has a retirement fund that's held by their employers, through their employers, by some financial institution.   And they'll probably be seeing a minor reduction in its value," said Steve Seib with TU's Department of Economics.

Congress is poised to OK a $700 billion bill to buy up bad mortgages.   A watchdog groups say that's $2,000 per citizen.

"Is it a waste of taxpayers' money?   Your money?  I don't see where there was much of a choice. Does it make me happy? No. And, it really doesn't make me happy when their CEO gets a $9 million windfall as well," said Steve Simmons with the Department of Human Services.

Kevin Bruce says he's worried about his daughter's future.

"What safeguards are we putting in place in order to safeguard that this isn't happening 10 years, 15, years, 20 years down the road again?" said Tulsa Pastor Kevin Bruce.

That's an important question that Congress this week is scrambling to answer. 

Congress is still working on how much oversight is needed for homeowner help.  The government says if they buy up troubled mortgages and hold on to them for a while, they'll be able to sell them later for a big profit.

The U.S. House Financial Committee will debate the merits of that $700 billion package on Wednesday.