Bush: The economy is going to be just fine

Bush: The economy is going to be just fine (FOX6 WBRC-TV, MyFoxAL.com, video)

Here are the top local stories: Wall Street showed no signs of relief on Monday while President Bush urged patience saying the bailout package would take time to work, Jefferson County Commissioners approve a resolution for county lawyers to look at bankruptcy as an option, Wachovia, CitiGroup and Wells Fargo agree to a standstill of all formal litigation and Alabaster police arrest two suspects in a bomb threat.

Wall Street showing no relief
Wall Street stumbles through another dismal day with no credit relief at home, and rising problems abroad. At one point, the Dow was down 800 points late in the session but it rallied back and closed down by 370 points. It finished below ten thousand for the first time in four years. The Standard and Poor’s 500 and the Nasdaq were also hit hard, losing roughly four percent each.

Sewer debt crisis; county passes resolution to look into bankruptcy
On Monday a majority of Jefferson county commission opposed bankruptcy in hoped that a deal can be reached with Wall Street in solving the sewer debt crisis but a vote to ask the county attorney to look into bankruptcy passed. Commissioner Jim Carns pushed for the bankruptcy resolution out of his environmental services committee. Commissioner Bobby Humphreys joined Carns in supporting the bankruptcy resolution. Both commissioners do not believe a deal can be worked out in the sewer debt crisis.

Governor Bob Riley asked the commission to give him until Wednesday to find a settlement with Wall Street over the county's massive sewer debt. Commission president Bettye Fine Collins says a bankruptcy resolution could hurt those negotiations and hopes there could be a breakthrough in talks this week.

Collins says Wall Street may be willing to cut a billion dollars worth of the county's debt. The county may be able to switch from variable rates to fixed rates. But, the deal hinges on using part of the county's one cent sales tax.

Bush: The economy is going to be just fine
As Wall Street reeled and global markets plunged, President Bush on Monday said the U.S. economy is going to be "just fine" in the long run. But he cautioned that the massive rescue plan will take time to work. On another jittery day in the financial markets, the president made two rounds of unscheduled comments on the economy -- first after meeting with small-business owners in San Antonio, and then at the top of a speech in Cincinnati about judicial nominees.

 In both cases, he defended the $700 billion economic bailout plan as one that won't just help Wall Street, but everyday workers and businesses, too. "I believe that in the long run, this economy is going to be just fine," Bush said. In the short term, he said the Treasury Department must go about enacting its plan to buy up troubled assets from financial firms so that credit will start flowing again to consumers.

Banks, Federal Reserve working to reach agreement over Wachovia Wachovia, CitiGroup and Wells Fargo agreed to a standstill of all formal litigation activity on Monday. It’s a sign that the banks and the Federal Reserve are working feverishly to reach an agreement over the fate of Wachovia. The standstill agreement will end at noon on Wednesday, unless extended. Federal Reserve officials are in talks with Wells Fargo and CitiGroup hoping to reach an agreement.

Alabaster police arrest suspects in shopping center bomb scare
Alabaster police identified one of two suspects arrested for a bomb scare September 30 at a shopping center. Police say 18-year-old James Payton Hutchens is in the Shelby County jail on $10,000 bond on a charge of making a terrorist threat. The second suspect's name was not released because that person is a juvenile. Both suspects are accused of leaving a device marked explosive that had been made to look like a bomb outside an electronics store. No one was hurt.

Avondale standoff ends with no one hurt
Birmingham police were forced into a 5-hour standoff with a suspect holding his 3-month old daughter on Monday morning. It started around 5:15 a.m. on 42nd street and fourth avenue south in Avondale. Police say the suspect got into an argument with his girlfriend in Tuscaloosa. He then took their child to a home in Birmingham. The child's mother called police and the suspect eventually handed over the baby and surrendered to officers.

Young people attending voting rally at Lawson State Community College
A youth vote rally brought out hundreds of young people to Lawson State Community college to discuss education and registration on Monday. BET personality Jeff Johnson was on hand to inspire the young people toward ‘Ownership and Leadership for Tomorrow.’ Students even marched over from Wenonah High School for the event.

Last Lynching, preview at Birmingham Civil Rights Institute
A preview screening of Discovery Channel's one-hour Ted Koppel special, the last lynching, is being held at the Birmingham Civil Rights Institute. US representative Artur Davis is expected to participate in the showing at six o clock on Monday night.

 In the broadcast, Koppel focuses on three Americans whose lives were profoundly affected by incidents of hatred and racism. The Koppel program premieres October 13th. Koppel and his team filmed segments for the special in July in Birmingham.