Reporter Karen Smith went out onto the streets of Bermuda to see how people were feeling about the economy and the Island's future.

Businessman John Casling, owner of a number of stores, including Smuggler's Reef and Buds, Beans and Books, said he believed the Island had had a "disastrous" summer, and the attacks had made problems worse. He said: "I think we are going into an off-season that is going to last about eight months. I don't know what businesses are going to do. We are talking about two or three day weeks and laying off staff. I may well close some locations and may well close them for good."

Diana Higginbottom, one of the owners of the The Little Gallery, said: "Trade slowed down quite a bit after the disaster, with the shock, but it is back to normal now. I expect the drop in tourism will affect us. But we also have a lot of local customers, which I suppose may also go down. Things are uncertain."

Retired bus driver Ernest Minors, 74, said: "I can sympathise with everybody. It's not only affecting us here, it is affecting people all around the world. I am sure there will be affects, but I don't know what they will be just yet or how bad they will be. We have to wait and see - I think everyone is waiting and expecting something."

Taxi driver Lloyd Smart said he felt his business had been thrust into the winter season earlier than usual. He said: "Business is slow. This is like January or February right now. I'm not taking any money. I can't predict what is going to happen, but we have to keep going and hope for the best. But what I do wish is that people would stop being so negative about the USA because they feed us everyday of the year. If the US has a recession, so will we."

Robert Zuill, owner of the Bermuda Book Store, said sales had been way down since the September 11 attacks. He said he wanted Bermuda to offer holidays to firemen and Police officers who had been working in the US on the rescue and recovery operations, to improve public relations and give tourism a boost. He said: "Our sales are down enough so we are reconsidering the business plan. We don't want lay offs, though. The trouble with all this is that we started in a bad position and it just got worse. I don't know how long it will last."

Joe Zuker, a corporate cash manager for the Bank of Bermuda, said he believed the economy in Bermuda had so far held up quite well. He said: "One of the biggest industries in Bermuda is the insurance industry, particularly catastrophic insurance and this was a catastrophe. It's hard to know what will happen. I think everyone is taking it carefully. We can already see that the hotels and tourism are suffering. But it really depends on whether it turns back to normal in a couple of months or lasts longer - it can never get back to normal as we know it, but as near as possible."

Michael Schrum, also a corporate cash manager at the Bank of Bermuda, said: "I think Bermuda is extremely dependent on US business and if the US goes into a recession, it will have an effect on Bermuda. I think people will be saving their money instead of spending it. Things are uncertain. Nobody can predict."

Developer Rodney Smith said: "I think the Island will go into recession. We need to push forward the idea that Bermudians need to be the managers of this country, so when jobs are being lost at the lower end, Bermudians see themselves still employed. I have come to the conclusion at this time, when the economy has been hit hard, why they call property `real estate'. The value of stocks is going out of the window, but property keeps its worth."