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Valley Financial Woes Save Email Print
Posted: 10:34 PM Oct 10, 2008
Last Updated: 12:52 PM Oct 13, 2008
Reporter: Mary Pulley
Email Address: mpulley@whsv.com

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President Bush cut in to regular programming Friday, trying to reassure the nation that the government is working to resolve the current financial crisis.

One financial representative in the Valley spent his day doing the same by phone. Michael Gochenour is a first vice president with Wachovia Securities and says he's received numerous calls from worried clients.

"It's very sobering to find out that not only have they gotten their statements, and seen losses but they've seen further losses here in the first ten days of October," says Gochenour.

Wall Street ended its worst week ever Friday down close to 2,000 points in eight days. This left some Valley investors frantic concerning their money.

Gochenour reminds these investors they have options including deciding to ride out economic struggles, get completely out of the market, or take out a percentage.

He says, "A lot of our clients have chosen to do the combination. They want to ride it out, they believe in this country, they believe in the economy, they believe in the market, because they've been in it for so long."

Meanwhile Sen. John McCain announced a proposal Friday that would allow seniors to hang on to their retirement funds and not be forced to sell while the market is weak.

"To spare investors from being force to sell their stocks, at just the time when the market is hurting the most, those rules should be suspended," says McCain during a campaign speech.

McCain talked about a current mandate that states investors must sell off their retirement investments when they turn 70 and 1/2 years of age. In a phone conference, McCain's senior policy advisor Doug Holtz-Eatkin lined out McCain's hopes for this proposal as well as the flaws with the current mandate.

"The primary goal of this plan it to make sure those individuals who put money into these accounts, and as a result got a tax deduction, ultimately pay the money out of their accounts and pay taxes for their deferred accumulation," says Holtz-Eatkin.

He also says this proposal is just a small part of McCain's plant to help fix the economy.

Holtz-Eatkin says, "It's a small initiative. The senator is basically interested in doing every thing he can to get things on track while moving to a set of policies that will produce an environment for small business."

However, Gochenour says there is one thing that's having a positive impact on the economy: lower prices at the pump. He also reminds people in the Valley that the nation is not in a depression, contrary to some of what has been said.

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