Congress whiffs on a proposed financial bail out plan, and Wall Street responds with a plummeting market.
A panel of UW-Madison business experts believe the developments should not lead to panic.
The panel of experts used terms such as "historic," for what's going on in our economy at the moment. And during more than an hour forum for alumni and students at the UW School of Business, "recession," not "depression," was as far as any of the experts would go, as they looked down our economic road.
UW-Madison finance professor Mark Ready said Wisconsin companies are likely to hedge their bets, until Congress comes up with a bail out after Monday's failure.
"We may end up with a very different plan, but my guess is something will happen. We're not quite there yet," Ready said. "I suspect businesses around the state are probably seriously thinking about, if it gets bad, and if we lose access to short term credit, what we do. I think they're probably at least putting in contingency plans."
UW Madison real estate professor Tim Riddiough said financial innovation was involved in the disastrous sub-prime mortgage loans and the buying and selling of bundled mortgages. Riddiough said in past periods of bust involving the railroad and internet industries, useful industrial infrastructures survived, and he said the innovations in the housing industry will ultimately help the economy.