Federal officials say they will intervene to try to shore up financial markets with a huge bail out of some of the nation’s largest financial institutions, among other actions. Meanwhile, consumers in Kentucky and across the country are still facing higher prices for commodities and more difficulty getting loans from banks. University of Louisville finance professor Tim Capps says local businesses could be affected as well.
“It’s going to affect the average business because they’re going to be more conservative about what they do, whether they expand their business or whatever, they’re going to be very careful about doing it. And the banks are going to be very careful about lending to them. So it leads to a business contraction,” Capps says.
Capps says that could lead to lay-offs, among other consequences. But he says Kentucky banks–so far—seem largely to be in good shape.