MAT-SU — While the overall U.S. economy is staggering under the collapse of major financial institutions and a plummeting stock market, financial experts here say Alaska’s relative isolation is helping insulate it from the aftershocks.

Experts in the banking, investment and credit union businesses agree on advice for Alaskans: Don’t panic.

While some financial institutions in the Lower 48 are in crisis because of poor lending practices during the boom cycle in the housing market, Alaska hasn’t seen wild swings in its housing market and its lending institutions weren’t dealing in subprime loans. Nancy Usera, senior vice president for corporate development with Alaska USA, said banks and credit unions in the state are strong, thanks, in part, to lessons learned during Alaska’s boom/bust cycle in the 1980s.

“We have plenty of liquidity and are in strong capital positions,” Usera said. “We have a very robust public sector pumping money into the system.”

Usera said that isn’t saying Alaskans aren’t affected and won’t feel the recession. But she cautioned against likening this economic downtown to other events.

“This problem was a long time coming and it’s going to take a while to fix it,” Usera said.

Usera pointed to the lending practices in the early ’90s when credit markets were expanded with home ownership initiatives to help first-time homebuyers.

While there are fears in other states that money for loans will be difficult to come by in the new economy, it should be business as usual in Alaska, according to the president of the Alaska Bankers Association.

“We’re still competing for the business,” said Dave Lawer, who is also senior vice president and general counsel for First National Bank. “We are more anxious to lend given the fact people have taken money they had held elsewhere and put it into insured accounts in banks.”

With the Federal Deposit Insurance Corp. (FDIC) and its credit union counterpart, National Credit Union Administration (NCUA), insuring up to $250,000 for each depositor through the end of 2009 under the Emergency Economic Stabilization Act of 2008 recently signed by President Bush, banks and credit unions have money to lend.

Concerns about the lack of funds flowing between banks are also not an issue here, Lawer said.

“None of the banks here are dependent on borrowing from other banks to continue operations,” Lawer explained. “All banks here have good sources of deposits and are well capitalized.”

He said there’s no reason to fret that Alaska banks will be swallowed in takeovers, close or freeze funds because of the financial crisis. On Friday, a bank in Michigan and one in Ohio closed their doors.

“You’re just not going to see that,” Lawer said. “Banks here did not make the sort of loans that gave rise to problems elsewhere.”

Alaskans aren’t immune from the financial woes and bad news from Wall Street. People who have stocks have likely seen them drop in value since market highs a year ago. Investors with 401k and IRA plans tied to the markets likely saw them devalued in the last few weeks.

The Dow Jones Industrials lost 1,874.19 points, or 18.2 percent, over the past week. The dismal performance outdid a 17-point drop during the week that ended July 22, 1933.

John Warner, a financial advisor with Edward Jones in Wasilla, said his assistant likened the economic tailspin to hitting a patch of black ice and spinning out of control. As his assistant put it, the last thing she’d want to do is jump out of the spinning vehicle.

Warner said investors should remember to maintain a long-range approach to their financial plan, whenever possible.

“During times like these the investor’s impulse is to sell out and get out of the market,” Warner said.

Instead of bailing, investors should consider their risk tolerance and see how they can benefit from the downturn.

“There are some incredible buying opportunities out there right now,” Warner said.

Usera agreed. “For every gloom and doom you can see people who have done very well on the heels of economic crisis.”

Both Warner and Usera said it is important for people to gauge their risk tolerance and to get personal advice tailored to their preferences. For those who like to go it alone, Warner suggested online research and books.

Warner also emphasized diversification — a portfolio with many types and qualities of investments that can meet a person’s goals in the short and long term. He cautioned against hedging everything on one “golden investment.”

Lawer said the severe financial problems have arisen largely because people and companies abandoned rules of common sense and economics. From too much personal debt to lending without proper verification of income, there is plenty of blame to go around. Without a return to responsible practices, there’s no easy fix, he said.

“The fundamentals of investing and lending money are still those criteria that have to be observed to avoid this happening,” Lawer said.

Warner, Usera and Lawer agreed that there is no reason for Alaskans to panic. The American economy is strong.

“This house of cards was built one card at a time,” Usera pointed out. “It’s going to take some time to build it back up brick by brick. I personally think it’s going to happen.”

Warner agreed.

“Fundamentally, we’re a strong economy,” he said. “Do I have faith the market will come back? I do.”