By: Kaitlin Chapman
Opinions about the economy are as split as the election itself. Byron Bexley, Chairman and CEO of TexStar National Bank said, “It’s sensational, there are problems in the economy, yes, but it is not as bad as the media has portrayed it to be. Particularly in this part of the country we are very insulated.”

Clay Aderholt, Vice President of Texas Capital Bank, believes otherwise. “Our local San Antonio economy has been somewhat shielded since our real estate values don’t fluctuate as much as other parts of the United States. But as you speak to people in other parts of the country, you start to realize it’s bad out there,” said Aderholt.

“The economy is feeling the implications of ‘loose credit’ being extended to the American consumer over the past eight to ten years. It has been easy for people to get loans on everything from homes and cars to big screen TVs. With real estate being the primary driver, a significant number of these loans have now gone into default as real estate values have softened across the country,” explains Aderholt about what is really happening in the economy.

The media is comparing the current state of our economy to the Stock Market crash in the 1930s, which has many Americans worried. Bexley disagrees entirely with the media, “There was no intervention in that crash, and there was a lot more speculation going on toward a lot of the consumers in the market.”

In an article titled, “Fannie May Eases Credit To Aid Mortgage Lending,” published September 30, 1999, in the New York Times, the problems occurring in our current state of the economy had been predicted. “Fannie Mae, the nation’s biggest underwriter of home mortgages, has been under increasing pressure from the Clinton Administration to expand mortgage loans among low and moderate income people and felt pressure from stock holders to maintain its phenomenal growth in profits,” stated in the article by Steven A. Holmes.

The article goes on to say, “From the perspective of many people, including me, this is another thrift industry growing up around us,’ said Peter Wallison a resident fellow at the American Enterprise Institute. ‘If they fail, the government will have to step up and bail them out the way it stepped up and bailed out the thrift industry.”

Even though this article completely predicted out current state, Jim McKissic, Owner of River Mortgage, gives advice on how important it is to keep good credit in this crisis. “In these tough times your credit is more important than ever. By all means possible, protect your credit just as you protect your good name or your faith. Remember, your excellent credit is worth more than your money in the bank. Specifically speaking, never make a late payment to anyone, especially a late Mortgage payment,” said McKissic.

Curtis Beauchamp, Vice President of Military Affairs for Wells Fargo, completely agrees with McKissic and goes in to more depth on how truly important it is to check one’s credit. “No matter the economic cycle – down, up or in between – it’s important to check your credit report and see where you stand. In fact, it is a good idea to check once a year, especially to look for errors that could be caused by entry mistakes or, worse, fraudulent use of your credit,” said Beauchamp.

Some people may be wondering if there is hope and if our country will be able to make it out of this economic crisis. “As a country we have dug ourselves into somewhat of a hole, but I firmly believe we can pull ourselves out. I don’t think it is rocket science but instead falling back on some core principals, for individuals and families: Don’t buy what you can’t afford – make a budget and stick to it. Don’t spend 100% of what you earn – save something. Plan for a rainy day. Give a portion of what you earn away,” said Aderholt. Bexley also agrees with Aderholt, “I think through the end of 2009 it’s going to be rough, similar to right now. I think there will be some improvement even down here somewhere in 2010 you will start to see some bright spots.”