LESTER HOLT, anchor:
downgrade could mean bad news for your family's bottom line. We get our report tonight from
NBC
's
John Yang
.
JOHN YANG reporting:
Dan Gunning
has spent a year looking for his
Florida
retirement home. Today, he decided he needs to find it fast, worried that
interest rates
will go up now that the
United States'
credit rating has gone down.
Mr. DAN GUNNING:
I don't have
the luxury of time
anymore if the
interest rates
are going to go up.
YANG:
Analysts say the downgrade could prompt investors to demand higher
interest rates
for US bonds. That would raise consumer
interest rates
from everything from credit cards, student loans, car loans and home mortgages. A little increase can mean a lot. On a $200,000 30-year fixed mortgage, just a half point hike would mean an extra $740 a year.
Realtor Kevin Gallagher
worries about what that would do to business.
Mr. KEVIN GALLAGHER:
With all the fear in the market, it just scares people and everybody is very, very cautious.
YANG:
But that's all in theory. The real impact is uncertain. Much will depend on how global investors react starting in the
Asian markets
, the first to open since the downgrade.
Mr. RON INSANA (CNBC Senior Analyst):
If this effectively throws gasoline on the fire and
Asian markets
sell off sharply, it's likely we'll have a difficult time in our own markets here Monday morning.
YANG:
Analysts say the biggest impact could be more psychological than practical, further shaking Americans' confidence in the economy. That could be a potential knockout blow to the struggling recovery.
Unidentified Woman:
I'm already upside down in my house, so how much worse can it get?
Unidentified Man:
I think we're headed for hard times regardless of what happens.
YANG:
With the financial implications unclear, experts have advice for investors and consumers.
Ms. VERA GIBBONS (MSNBC Financial Analyst):
The last thing you want to do is hit that panic button altogether because that will just kill off confidence, both for consumers and for businesses alike.
YANG:
Advice that's been increasingly hard to follow in this week of financial turmoil.
John Yang
, NBC News, New York.
“ ”