Wall Street crisis could trickle down to ABQ

A 700-BILLION DOLLAR FINANCIAL BAILOUT PROPOSAL, THE ROLLER- COASTER STOCK MARKET, AND TALKS...  More »

A 700-BILLION DOLLAR FINANCIAL BAILOUT PROPOSAL, THE ROLLER- COASTER STOCK MARKET, AND TALKS OF A RECESSION. IT'S ALL HITTING ALBUQUERQUE - AND AFFECTING THE WAY THE CITY DOES THEIR BUSINESS. AND TONIGHT ONE CITY COUNCILOR SAYS IF IT ALL CONTINUES - - SOME MAJOR CONSTRUCTION PROJECTS MAY NEVER GET OFF THE GROUND. JEFF MAHER IS LIVE NEAR LOUISIANA AND INDIAN SCHOOL TO EXPLAIN. JEFF? THE CITY RELIES ON ITS BONDS TO PRETTY MUCH BUILD AND IMPROVE EVERYTHING YOU SEE AROUND TOWN - - ROADS, SIDEWALKS, BRIDGES.... OVERALL INFRASTRUCTURE. RIGHT NOW THE CITY CAN'T SELL THOSE BONDS BECAUSE THE MARKET IS IN SUCH BAD SHAPE - - CITY LEADERS CAN ONLY HOPE THAT THINGS WILL CHANGE FOR THE BETTER. 'the total failure by the government to regulate the financial industry over the last ten years means the city of albuquerque can't do business as usual'CITY COUNCILOR MICHAEL CADIGAN SAYS BECAUSE OF THE POTENTIAL FINANCIAL CRISIS FACING THE NATION - - THE CITY HAS ALREADY HAD TO PUT SOME THINGS ON HOLD. 'we can't go to the market to sell bonds to build airports and roads like we do usually, we've had two bond sales cancelled, two meetings cancelled where we were going to approve the sale of bonds because ing belly up'rk befuddled by the bond insurance companies going belly up' ONE OF THOSE POSTPONED SALES IS A 34-MILLION DOLLAR BOND FROM A 1995 PROJECT INVOLVING THE SUNPORT - - WHERE THE MONEY WAS USED TO MAKE IMPROVEMENTS TO THE TERMINAL. THAT PROJECT IS LONG-FINISHED, BUT THE CITY WAS HOPING TO REFINANCE BY PUTTING THE BOND ON THE MARKET - - THEY WERE ADVISED TO HOLD OFF BECAUSE OF THE UNCERTAINTY PLAGUING WALL STREET. LONG TERM - CADIGAN SAYS NOT BEING ABLE TO SELL BONDS MEANS THE CITY CAN'T MOVE FORWARD ON FUTURE CITY IMPROVEMENTS. BUT FOR THE MOMENT, CITY OFFICIALS SAY CURRENT PROJECTS ARE STAYING ALIVE. 'because we are limited actually and so secure in our investment portfolio, we have not seen problems hwere at the city which is a very good thing' LAMBERSON SAYS THE WORST CASE SCENARIO FOR THE CITY IS IF INTEREST RATES GO UP. BUT SHE SAYS RIGHT NOW IT'S HARD TO TELL EXACTLY WHAT'S GOING TO HAPPEN. LIVE IN NORTHEAST ALBUQUERQUE. JEFF MAHER. EYEWITNESS NEWS FOUR. PRESIDENT BUSH  « Less