PALM BEACH COUNTY, Fla. - Many Americans are watching their wallets this weekend. "This thing is going down and it's going to go down. There's no doubt about it," said Tom Borynack, 69, of West Palm Beach. After a week of financial turbulance, there is more potential trouble for the United States economy. "It's coming to a point where we are all going to be in trouble," he said. Borynack, who is retired, envisions the economic picture getting darker before it improves. This, after Standard & Poor's lowering of the federal governments AAA credit rating Friday.
Dr. Keith Jakee is an Assistant Professor of Economics at Florida Atlantic Univeristy. He said, despite the downgrade, the U.S. is still the most likely place for people to invest. "We're still, as the saying goes, the best house in a bad neighborhood," he said. But Jakee said higher rates for paying off government debt could mean an increase in rates for consumers. Those increases could come with everything from houses to credit cards. "To not have that gold seal of approval is psycologically and emotionally a shock," said Jakee.
Marshall Greenfeld, who runs a small apparel business, ears that is going to impact the retailers who sell his products. "We'll definitely see the possibility of a drawback on their purchasing power because of the amount of interest they'll have to pay on their credit card," said Greenfeld, who resides in Charlotte, North Carolina.
It remains unclear if or when interest rates will fluctuate because Friday's downgrade. Dr. Jakee is expecting the ups and downs on Wall Street last week to spill over into Monday.
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