Despite a shaky week for Wall Street, the Long Island Association's chief economist on Friday said the Island's economy remains strong, for now.

The LIA's chief economist, Pearl Kamer, explained how lenders caused the economic activity this week.

"You can't extend a housing boom by lending to those who can't afford to repay you," she said.

Kamer said Long Island's economy is in good shape at the moment, but that a sustained downturn in the mortgage and continued tightening of available credit could change things.

Kamer said fewer homes would be built or sold -- meaning purchases of goods large and small would decline. Individuals would also travel less and eat at home more often.

These conditions would greatly affect Nassau and Suffolk counties, which heavily rely on strong sales-tax revenue. Property taxes could be increased to keep the counties fiscally afloat, a move Nassau County Executive Tom Suozzi is said to be considering for next year's budget plan.

Kamer recommends that the federal government help resolve the credit issue by providing modest funding to local governments. These municipalities, in turn, would help borrowers restructure their mortgages to prevent foreclosure.

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