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How Bad Is It?

Submitted by Gene Patterson on October 4, 2008 - 12:36am

So how bad is it out there for pension funds and local retailers?

Former McWherter Chief of Staff, Billy Stair believes it's really bad, describing it as "freightening" and backs up his concerns with two examples.

Stair points to the State Treasurer who - on Tuesday - said Tennessee's pension plan lost - over a 24-hour period - one billion dollars.

And Stair says, for the first time in its history the ORNL Retirees' Pension is, as he described it, "under water," meaning the plan has fewer assets than liabilities.

And what about local retailers? Bo Carey - owner of Greer's Furniture and Appliance store - and a member of the National Federation of Independent Business - says he philosophically opposes government intervention in the marketplace, but not this time.

Carey says many businesses are down 30 percent or more from a year ago. And of greater concern is the condition of local, regional and community banks, which he believes are "in peril."

He believes the bailout package will allow banks to begin issuing credit again and that should stimulate sales and help small businesses.

"Sometimes you have to hold your nose," said Carey of the plan. "It's not what I would normally want, but it appears to be our best bet for now."

You can hear more from Carey and Billy Stair, Sunday on Tennessee This Week. You'll also hear from UT Finance Professor Dr. Harold Black - who is not pleased with the bailout plan.

He points to a number of issues he has with the plan.

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For reasons with which we

Submitted by Bayard J. Donahoo (not verified) on October 9, 2008 - 3:16pm.

For reasons with which we are all now familiar, we may have to fix our economic problems ourselves. We may have to come up with the money to pay for everything. I think this means raising taxes while cutting expenditures.

Reagan lowered taxes and ran a monsterous deficit.

Clinton raised taxes and had a surplus.

Bush cut taxes and ran a monsterous deficit.

Raising taxes and cutting spending seems to work.

I think we going to have to start paying for stuff with money (from our own pockets - aka taxes), not from the national treasuries of China and Saudia Arabia. It will be painful, but we are Americans, we will do it.