Mid-Missourians Worried After U.S. Credit Rating Drops

6 years 11 months 2 weeks ago Monday, August 08 2011 Aug 8, 2011 Monday, August 08, 2011 12:42:00 PM CDT August 08, 2011 in News
By: Ben Wagner
loading

FULTON - Mid-Missourians said Monday they worry about their finances after the U.S. lost its AAA credit rating Friday with Standard and Poor's credit agency. The move to AA+ is likely to raise interest rates and borrowing costs for consumers, as well as the American government.

Judy Bastean, a semi-retired Fulton resident, said she is worried she won't have enough money to fully retire for some time. She's not sure if her 401K can support her financially after she stops working.

"My 401 is going down the tubes fast. I'm semi-retired and right now, the horizon doesn't look too good that I'm going to be fully retired," Bastean said.

Callaway Bank investment advisor Tim Borman said people on fixed incomes are most vulnerable when markets plummet. He said when interest rates go down in savings and certificates of deposit, it makes it more difficult to pay for increasing costs of living.

"It's just like a consumer - if you have lower credit, you're going to have a higher interest rate. And now that our government's debt rating has been lowered, potentially we could have to pay higher interest rates," Borman said.

But, Borman warns pulling all money out of the market is never a good option. He said the stock market has highs and lows. Acting on emotion will only hurt investments in the long run.

"The market is never going to be a straight line. It's going to be a roller coaster - up and down. We're definitely hitting some serious speed bumps right now," Borman said. "And so, it's just one of those things that hopefully you've got your money spread out and diversified."

S&P has given the U.S. a AAA credit rating since 1941. In a statement, the credit ratings agency gave the new U.S. credit rating a "negative" outlook, indicating another possible downgrade in the coming months. Monday marked the worst day on Wall Street since December 2008.

Click here to see the full report from Standard and Poor's.

More News

Grid
List
TORONTO (AP) — A man walked along a Toronto street firing a handgun into restaurants and cafes, shooting 14 people... More >>
14 minutes ago Monday, July 23 2018 Jul 23, 2018 Monday, July 23, 2018 8:44:26 AM CDT July 23, 2018 in News
SPRINGFIELD - The National Weather Service confirmed a tornado happened in Camden County early Friday morning. At 4:32am, a... More >>
19 minutes ago Monday, July 23 2018 Jul 23, 2018 Monday, July 23, 2018 8:39:00 AM CDT July 23, 2018 in News
BRANSON, Mo. (AP) — The U.S. Coast Guard says it is planning to raise a duck boat that sank in... More >>
38 minutes ago Monday, July 23 2018 Jul 23, 2018 Monday, July 23, 2018 8:20:00 AM CDT July 23, 2018 in News
ST. LOUIS (AP) — Ride-hailing companies Uber and Lyft have suspended a driver who recorded hundreds of St. Louis-area passengers... More >>
4 hours ago Monday, July 23 2018 Jul 23, 2018 Monday, July 23, 2018 4:25:18 AM CDT July 23, 2018 in News
COLUMBIA - A Columbia mom said she almost got on the duck boat that capsized on Table Rock Lake with... More >>
10 hours ago Sunday, July 22 2018 Jul 22, 2018 Sunday, July 22, 2018 10:28:00 PM CDT July 22, 2018 in Top Stories
JEFFERSON CITY - After eight years serving in the Missouri House of Representatives, Rep. Gail McCann Beatty's, D-Kansas City, resignation... More >>
14 hours ago Sunday, July 22 2018 Jul 22, 2018 Sunday, July 22, 2018 6:12:00 PM CDT July 22, 2018 in News
LAKE OF THE OZARKS - This recreational lake was just five spots shy of being the most dangerous place to... More >>
15 hours ago Sunday, July 22 2018 Jul 22, 2018 Sunday, July 22, 2018 5:55:00 PM CDT July 22, 2018 in News
BRANSON (AP) — A memorial service is scheduled for the people killed when a tourist boat sank in a Missouri... More >>
19 hours ago Sunday, July 22 2018 Jul 22, 2018 Sunday, July 22, 2018 1:39:00 PM CDT July 22, 2018 in News
SPRINGFIELD (AP) — Missouri residents may see a limited elk hunt in 2020 if the state's elk herd continues to... More >>
20 hours ago Sunday, July 22 2018 Jul 22, 2018 Sunday, July 22, 2018 12:16:00 PM CDT July 22, 2018 in News
(CNN) -- President Donald Trump's lawyers have waived attorney-client privilege on his behalf regarding a secretly recorded conversation he had... More >>
21 hours ago Sunday, July 22 2018 Jul 22, 2018 Sunday, July 22, 2018 11:49:18 AM CDT July 22, 2018 in News
COOPER COUNTY - A Blackwater man has died after being hit by a truck on Friday July 20, according to... More >>
22 hours ago Sunday, July 22 2018 Jul 22, 2018 Sunday, July 22, 2018 10:42:15 AM CDT July 22, 2018 in News
BRANSON (AP) — "Grab the baby!" Those were the last words Tia Coleman recalls her sister-in-law yelling before the... More >>
22 hours ago Sunday, July 22 2018 Jul 22, 2018 Sunday, July 22, 2018 9:59:07 AM CDT July 22, 2018 in News
IOWA CITY, Iowa (AP) — One app promotes itself as a way to discuss sensitive negotiations and human resources problems... More >>
23 hours ago Sunday, July 22 2018 Jul 22, 2018 Sunday, July 22, 2018 9:54:58 AM CDT July 22, 2018 in News
WASHINGTON (AP) — President Donald Trump's choice for the Supreme Court has given members of Congress a pile of material... More >>
1 day ago Saturday, July 21 2018 Jul 21, 2018 Saturday, July 21, 2018 2:52:51 PM CDT July 21, 2018 in News
WASHINGTON (AP) — The maker of a permanent contraceptive implant subject to thousands of injury reports and repeated safety restrictions... More >>
1 day ago Saturday, July 21 2018 Jul 21, 2018 Saturday, July 21, 2018 2:28:05 PM CDT July 21, 2018 in News
(CNN) -- The man accused of carrying out last month's deadly shooting at a Maryland newspaper has been indicted on... More >>
1 day ago Saturday, July 21 2018 Jul 21, 2018 Saturday, July 21, 2018 1:42:30 PM CDT July 21, 2018 in News
COLUMBIA - The 2018 Show-Me State Games kick off Friday, bringing thousands of athletes, coaches and fans from around the... More >>
1 day ago Saturday, July 21 2018 Jul 21, 2018 Saturday, July 21, 2018 1:15:00 PM CDT July 21, 2018 in News
ASHLAND – Seven locations throughout the state are open Saturday for parents to come and get their children I.D.’d, free... More >>
1 day ago Saturday, July 21 2018 Jul 21, 2018 Saturday, July 21, 2018 12:58:00 PM CDT July 21, 2018 in News
Columbia, MO
Broken Clouds 70°
9am 75°
10am 78°
11am 80°
12pm 81°