Steve Syre

" Welcome back top 38 you are listening to prepare for a -- eight F 680 WRKO. With my co -- state senator Bob haven't and we got broadcasting live from the great golf. At the Statehouse it to Massachusetts it's all he has -- out of the big business economic development. -- that we have here Massachusetts -- happy to be a private. And now we're also happy to have Steve size join us right now. You know people become very very comfortable the idea of the Boston business report each and every day with the Boston Globe's Steve side at today's edition. Of the business report is brought to -- TD BankNorth the remember FDIC you can stop by today for safe. High yields CD hey Steve side -- that now goes out of 936."

" Normally you -- act like that was all over -- but no one will be a great day yesterday and we're going to start off at least up again this morning."

" Is -- great hey you -- Lewis and Clark to the whole fitter at four by huge you'll have a guide in Paris are right we have never seen before. What what the heck. You know what is going on out there at this point."

" You know that obviously the market reacted very favorably to these plants in the US but also around the world over the weekend and and yesterday to. Make it just an enormous investments in banks and two. Unlock this this sort of complete panic in terms of banks and other people refusing to make any kind of loans overnight or otherwise just. Being completely frightened that wherever you're gonna give money to weather going to be the position that you back. Even -- and expect you know obviously. This -- a situation that was. -- and and kind of crazy but it was true and you know the Europeans ultimately in the end kind of led the way for us in this latest date we've been -- Dickering around with individual -- here and there and they made. Some very very bold moves to inject huge amount of money into banks and to buy stock in banks and in big ways and that's exactly what. What US government is doing right now and injecting. You know about a quarter of a trillion dollars it would -- saying that -- 250 billion dollars. Two invest into the banking system and it. Putting in the biggest bank in the country putting you know 25 billion dollars -- at a time into places like Bank of America. Citibank JPMorgan Chase and Wells Fargo and a much smaller scale right here in in Boston's state street is in line to. He get about two or three billion dollars of its own."

" Steve you had mentioned that the market will probably -- rough up again today and I Soviets -- that from. Early reports from the -- the European indices but depth is they have is to avoid detail behind. Behind what you expect in in terms of the opening bell today."

" No I mean that it's simply looking at what has happened in this. With the markets around the world has virtually at a point where art market that we. -- closed here in the opening days of the close there and got. Opening Europe and and and here we aren't you concede that there was that another very strong stay overnight here in Asia. European market did quite well if you look at. If you can judge the opening of the US market pretty clearly by how futures trade on the major stock indexes in the futures trade right now and that suggests the market elegant open something in the two to 3% up range this morning."

" Steve what we're talking about frank a couple of times over the past few weeks and other people commenting on television and cable shows of -- This seemed to be a general sense if not a whole at least in congress. That the taxpayers while they'd be on the hook. On paper for up to 700 billion dollars. Might very well recover. Most if not all of -- buying up assets. You know bargain prices so on and so forth. Do you still think that is a likely outcome though that we seem to have hit the floor and seemed to be coming back."

" A -- certainly that the real number is not going to be anything like 750 billion dollars with exactly what it is nobody knows and if yes it is possible we get all our money back I I think it's. Very probable get the vast majority of our money back if you look at. Just what we're talking about the latest US news here about investing -- fifty billion dollars in bank this is not for ever investment obviously. But I would expect that over a period of time over the you know we're talking. Hopefully getting out of distant and out of the three year period. It might take longer than that but. You know I think in that period of time we're hoping to get most of that money back and then. In terms of investments were going to make in terms of buying individual securities. Again I -- I would expect that would get most of our money back but that becomes kind of -- a dicier proposition that forecasts kind of how things are going to work play out terms of what we can. Sell securities for in the future."

" What are what Bob -- that I look at this and -- listeners are listening you know to this kind of conversation. I'm curious as to whether the form of -- when I say -- the taxpayers investment. We'll be allow Warren Buffett Ian. GE for example that we talked about it some of the other -- Goldman. All what will it be like their Prime Minister Gordon Brown. With the at tech game preferred positions -- getting seats. On the board of directors. Really it in terms of the governments of these of these companies."

" Yeah I would say getting government deeply involved in the boards of companies that is is not an idea I'd be crazy about it at all. You know I think it's one thing to inject. Financial stability into the system it's another thing for government to run private business. And you know I think that's certainly the European way I would hope it's not doesn't turn out to be the American way."

" Steve I guess in layman's very simplistic question for you when you talk about the potential of this -- turn around in three years. If we're in a sense -- into a degree our banks and we're making it you say these 25 billion dollars. Chunks of investment in local banks -- and around the country. How -- weak one when things turn if in fact they turn. How -- how do we extract ourselves I guess from this equity position what how how -- what -- if things continue from that point in time on."

" Well it is you're extract yourself because that. The position so our our soul you know or or essentially bought back by. The institutions that more likely. It is that -- it's --"

" I was to say it at that point in time how is that decision going to be made who makes that decision."

" I I think that banks will have an opportunity to to pull the trigger on that to a great degree of their position to do that in the future and yeah. You know the sooner the better as far as I'm concerned but. You know I think if if things worked out ideally. How would how that happened is that. That a couple years down the road that both banks are more stable and they all their access to other forms of capital in the market is also. More normalized and available that that essentially. They are in a position to to capture us out basically. And it and do that -- we get our money back in and hopefully we make a little money. In the processes well."

" Steve we'll run it up against the clock but us -- compared it stirred the paper today by your colleagues Robert weissman front page. Bill Gates big -- many many others quoted as saying consumer confidence down expect very high unemployment full recession ahead. People cutting back and then that becomes a cycle that is that if you know. Feeds on itself. What she attacked me that I guess I have an interest in reading that's of people just don't go buy champagne -- that the Dow was up 936 yesterday. We still have some tough sledding ahead it seems to --"

" Absolutely you know it was great that the market went went up yesterday and and hopefully we'll end the day up again today but it you know that's a reaction to. Having a greater degree of confidence that. That this immediate. Liquidity crisis that the banking crisis is is using a little bit and may even be -- who knows it's too early to say that but. Beyond that there there is this larger. Moving issue about the economy and I think there's no doubt about it that the United States and the rest of the world are headed for. A fairly significant reception and you know what impact that has on the stock market. Not today or not next week but yet it's -- six months down the road remains to be seen as a lot of proper economic -- hadn't. You know. We've we've been talking about out think some are prices like gas prices are a little bit better but. Those prices are going down for a reason that. People can clearly see a slower tougher economic times ahead for everybody."

" Kuwaiti that it Gallup despondent on gallop a bowl of Steve sire and a cat thank you and up you know every day this is like taken the AP class he would be its placement class. In economics and finance with Steve's I'll love doing this Boston business report. "

" Great the other great show the great off."

" They go absolutely don't run out of adjectives now that's pretty good -- Steve's I have fabulous. In today's Boston business report with Steve's site has been brought to buy TD bank -- remember FDIC. Stopped by today for safe. High yield CD -- TD BankNorth -- have a that I would back to you had a moment on AM 680 WRKO."