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Wall Street, Main Street Worried About Economy

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Sep 30, 2008 9:49 am US/Mountain

Wall Street, Main Street Worried About Economy

CBS News Interactive: Eye On The Economy

NEW YORK (CBS) ―

Click to enlarge 1 of 1: Experts say that without a bailout, loans for cars, homes, college and businesses would dry up.
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CBS News Interactive: Eye On The Economy

The stalled financial rescue plan in Washington, D.C. had both bankers in Denver's financial district and small business owners on Littleton's Main Street worried Monday.

Experts said without a bailout, loans for cars, homes, college and businesses would dry up. A recession would almost be certain as people lost jobs and companies cut back even more, reports CBS station KCNC-TV in Denver.

Others worry that even with a bailout, banks will still be conservative in their lending practices.

"There is no guarantee the banks will start lending money again," said Dave Prokupek of Consumer Capital Partners. "I think what they'll do is they'll think they escaped near death experience and they'll be conservative."

"And in order to pay for that, they're going to have to raise taxes or cut spending or do something that negatively effects the taxpayer," said Prokupek.

"In some ways, the people who took risky loans, they took chances and they do have to pay for that and I'm sure the shareholders will pay for that, but we still need to keep the banking system sound and that's what the bailout is all about," said Jon Robinson of UMB bank.

Businesses are already feeling the pinch. According to Standards and Poors, 160 companies are in danger of defaulting over the next 12 months, including United Airlines, General Motors, Six Flags and Trump Entertainment.

A hair stylist on Main Street in Littleton said Monday the economy is taking a toll on her business.

Another small owner moved across the street this year to expand her boutique. Still, she's concerned.

"We could potentially go under," said Peggy Cooper of Details Boutique. "If people aren't out buying, Christmas is just around the corner."

Another merchant echoed Cooper's comments. They said the true fallout may not be known until Christmas when businesses get an idea of what people's holiday spending habits will be.