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SOMBA K'E/YELLOWKNIFE - Shockwaves from the current international economic crisis are being felt in the NWT.

As stock markets rally or plummet depending on the day of the week, access to credit tightens and currencies bounce around, people in the North are wondering just what is going on and how it will affect them.

On a personal level, Northerners with invested savings have watched with concern as many portfolios fall in value.

One Fort Smith woman has seen the value of her mutual funds decline over the last year, recently taking a big plunge.

The woman - who asked that her name not be used - said one of her mutual accounts dropped from almost $46,000 a year ago to a little over $35,000 on Oct. 8.

"I've just kind of watched it go down, down, down," said the 41-year-old.

She noted the biggest shock was earlier this month when the value dropped $3,000 in a matter of days.

"What's the point of saving money?" the woman asked.

As she watched the value of her mutual funds decrease, she thought the financial upheaval was related to the upcoming U.S. presidential election and that things would stabilize after the vote.

"Now I don't know," she said, noting the crisis has gone global.

It is generally accepted the crisis was triggered by a glut of bad mortgage loans in the U.S. which brought down some American financial institutions and threatened others.

The Fort Smith woman said the only saving grace in her situation is she is young enough that her money will be in the mutual funds long enough to recover its value.

However, she also expects to work longer than she had planned before retirement because of the losses.

Rashna Bundan, a financial adviser with Investors Group in Hay River, said she is aware some people are concerned about the uncertainty on financial markets.

"People are emotionally attached to their money," she said. "It's natural they're concerned."

Bundan said there are retirees who are worried their investment income may be reduced, while other people planning on retiring soon are unsure is they have enough saved to stop working.

"There are many concerned this is not just a temporary downturn," she said.

However, Bundan said there are those who look at the downtown as an opportunity to add to their investments at a good price.

Bundan has not received any calls from clients panicking about the financial crisis.

She said she helps her clients understand the long-term nature of investments and sticking to a well-defined and diversified financial plan.

"Making decisions based on fear or greed do not benefit a person's long-term goals," she said.

Aside from personal finances, the economic crisis is affecting NWT business, particularly all-important mineral exploration sector of the economy.

John Curran, executive director of the NWT Chamber of Commerce, said the biggest impact is on junior exploration companies.

"The way they pay for exploration is to go out to the financial markets and raise money," he noted. "There's no venture capital out there for that kind of thing right now and no credit."

Curran noted that, in 2007, about $193.7 million was spent on exploration and deposit appraisal in the NWT.

In August, Natural Resources Canada released revised spending intentions by the companies for 2008 - amounting to $128.7 million.

"That's a huge decline," Curran said, noting it can be attributed to both the financial crisis and regulatory regime issues in the NWT.

The lack of funding for mineral exploration companies will affect many businesses and people who service that sector, from helicopter firms to camp workers, Curran said. "It's right down to grocery stores which do the bush orders."