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Jim Leach: Could be a Lengthy Recession

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IOWA CITY - Former Iowa Congressman Jim Leach says we could be at the beginning of a lengthy recession.

Leach says there is a possibility we're in a recession that could last months or even years.

"It could trip into something more serious. So the real goal is to hold losses to the least possible," said Leach.

Across the nation, people have lost. Some more than others.

"It's become a systemic problem instead of one industry problem," said Leach. Leach says Iowa is fairing better than all the other states.

"But our great strength is in our community banking system which is small banks and one aspect of this issue is the bigger in difficulty the smaller in better shape," said Leach.

The smaller banks here say they know the market, the customers and are more conservative. Now the government is trying to right the financial downturn and try to stop a recession.

"Partly under the theory, the move you put into it initially, the better the chance in stopping the problem."

"You want overwhelming force if you can and that is what the government is trying to do, but it may be behind the curve."

But he says it would be worse if they did nothing at all.

No banks or credit unions would comment on camera about this issue. Many of them say right now it's too sensitive to comment whether the news is good or bad.

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