Economics expert says financial crisis could affects consumers two ways

Omaha, NE – A Creighton University economics expert says the trouble in the financial markets isn't entirely unexpected.

Ernie Goss teaches Economics at Creighton and also compiles the Mid-America Business Conditions Index. Goss says former Federal Reserve Chairman Alan Greenspan warned several years ago that Fannie Mae and Freddie Mac were in danger of collapse. But Goss says Congress and Wall Street ignored those warnings.

Goss says the banks that participate in the monthly Business Conditions Index survey see two potential impacts from the financial crisis. One is possible re-regulation of the banking industry, which could lead to higher costs for individuals and families. The other is that taxpayers will ultimately foot the bill for the Government's $700 billion bailout package.

Goss says more effective regulations are needed, and he'd like to see the formation of a super-agency that would oversee the FDIC and credit unions.