Professor: Tough to start economy without trust

BUFFALO, N.Y. (WIVB) - So, why did the stock market end the week in the red despite the green light given to the bailout plan?

Within hours, a revised bailout plan passed and the Dow surged 300 points before dropping 157.

Wayne Jones worries about the future. "I think everybody's looking for a quick fix and to wake up tomorrow and everything will be sunny and happy."

When exactly can we expect to see the results of the bail out plan?

Buffalo State Economics Professor Bill Ganley said it could be weeks, months, even a year.

Either way, a couple of different things will have to happen before we see the sun shining again.

"The big issue is there used to be an old TV show, 'Who Do You Trust'. Right now, no one trusts anybody. The financiers don't trust each other. The public doesn't trust the politicians," said Professor Ganley.

The lack of trust could mean a slow start to jump starting the economy. When the crisis swept through Wall Street, consumers cut back on spending.

Two thirds of the economy is based on consumer spending.

"The thing that's gonna hurt consumer confidence is a drop in income and a drop of employment," said Ganley.

The unemployment rate is 6.1 percent but experts said the number only counts people who are actively looking for a job.

When you count people who have given up, the rate jumps to 9.1 percent.

Story by Tricia Cruz , WIVB