Nobody can stop the credit crunch coming to Bermuda — but we can influence how it will affect the Island.

That is the message from economist Craig Simmons in response to a poll showing confidence in the economy is slumping.

"We cannot prevent the credit crunch from visiting our shores, but we can determine, in a significant way, how the credit crunch will affect employment, renting and lending, as well as the incomes that flow from them," Mr. Simmons told The Royal Gazette.

"The uncoordinated way in which wages and rents have been determined will out of necessity need to be replaced by a coordinated effort between private and public (Government) employers, unions, the financial sector, and the Government or Governor as both arbiter and facilitator.

"Measures to cushion the impact of the credit crunch should be targeted at income flexibility, transparent in the way incomes are geared downward and temporary.

"Perhaps the interest and despair we are feeling is a result of a lack of creative thinking when it comes to economic affairs."

Mr. Simmons said Bermudians' knowledge of the fragility of the economy would stand them in good stead.

"That the second largest source of foreign currency is the income that Bermudians receive from their overseas investments in stocks, bonds, real estate and other assets is proof that Bermudians have not put all of their eggs in the local property market," he said.

"Most, however, of our wealth and debt are held in property and as such is heavily dependent on a strong international business presence.

"That Bermuda hasn't experienced a recession since 1992 and that one is almost certain to arrive within the next couple of months, may have made economic issues so popular.

"Also, the media has done a good job of making people aware that there is a problem, as well as the nature of the problem (the buying of property at inflated prices in the hope that some greater fool will take it off your hands).

"What may not be so clear is how the credit crunch will affect individual Bermudians. A construction worker may see the future very different than, say, a qualified accountant, a marine scientist, or a civil servant. Our differences are dwarfed by our similarities. One would like to think that the first commandment of island living is: be good to your neighbour — you may need them after a hurricane or economic disaster."

He added: "The reasons why companies come to Bermuda hasn't changed: a sound infrastructure of roads, telecommunications; an educated workforce; political stability; an independent judiciary. Smart people invest in companies the same way. They look to the underlying strength and utility of a company, not how to make a quick buck. We are going to be okay, as long as we act prudently."

Research.bm's poll showed the economy/unemployment was now people's second biggest concern on the Island, behind crime but ahead of housing and education.