DEBORAH MARCHINI, CNN ANCHOR: And as we check the pulse of what else is on Wall Street's mind, I'm rejoined by David Jones, chief economist at Aubrey G. Lanston. We were talking about, with Muriel Siebert, a couple moments ago, about the massive amount of telecom equipment that's still out there to be gone through. What do you think the fallout will be from this for the economy?</s>DAVID JONES, AUBREY G. LANSTON: Look at it this way, Deborah: The telecom industry itself has borrowed about $650 billion over the last several years. We could have a bailout that's equivalent, maybe $150 billion, to the S&L; bailout a decade ago. This is a significant development. Both banks and the telecom providers will have to share those bailout funds.</s>MARCHINI: Taxpayers bailed out the S&Ls.; Are you implying a similar taxpayer bailout of the telecoms?</s>JONES: Not at all. The private sector has to do it. Banks will take a hit, and so will the providers of that trade credit to the telecom industry. So we have to watch the balance sheets of both bank and nonbank firms, looking ahead.</s>MARCHINI: We've seen a lot of pain -- more to come.</s>JONES: More to come, absolutely, Deborah.</s>MARCHINI: David Jones, thank you very much.</s>JONES: Thank you. TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com
What Will Excess Telecom Inventories Mean for Economy?