The Ripple Effect
As Economic Crisis Expands, Community Development Feels the Pinch

	William Emmons gives an overview of the credit crisis during a meeting in Conway, Ark. Emmons is an economist at the Federal Reserve Bank of St. Louis.

By Amy Simpkins and Roby Brock

The economic situation over the last few months has been tumultuous. Fannie Mae and Freddie Mac entered government conservatorship. The potential failures of Bear Stearns and insurance giant AIG required large-scale intervention to minimize market disruption. And the Fed introduced aggressive new liquidity measures to address the seemingly daily changes in economic markets.

This national and global economic crisis hit close to home for professionals working in community economic development. The entire field has been affected by tightening credit and capital markets. Individuals, neighborhoods and cities alike continue to face difficult challenges to finding financing for community economic development initiatives.

In September, community development organizations, financial institutions, private developers and representatives from state and local governments gathered in Conway, Ark., to discuss the implications. ...FULL STORY

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