Americans will take hits in their wallets and their retirement portfolios from S&P’s decision to yank Uncle Sam’s stellar AAA credit rating.
Gas could go up by as much as a dollar a gallon – and consumer loan rates may rise an extra 0.5 percent, financial pros say.
IRAs, 401(k)s and other retirement savings and investment accounts could plunge another 10 percent in value, estimates financial analyst Richard Bove of Rochdale Securities.
“It no different than the value of your home going down. It’s just another hit to the American consumer,” Bove said.
Not everyone sees such a big impact on stock prices. Some Wall Street traders and bankers told The Post that they anticipate a fairly muted response, since the market already shed $2.3 trillion globally in last week’s roller-coaster trading.
But Americans can expect higher prices for many goods and services. Higher interest rates on US government securities will bring higher borrowing costs to big businesses — costs that businesses will pass on to consumers.
A $1-per-gallon increase in the price of gasoline could be pushed by a possible $25 jump in the price of a barrel of oil. Oil prices are now about $87 a barrel, after peaking at around $120 this spring.
It’s bad news for those in the market for a mortgage, as the S&P decision could boost the rate on a 30-year loan from the current average 4.5 percent to 5 percent. That means a $350,000 mortgage would cost an extra $100 a month.
{NY Post/Matzav.com Newscenter}
But us Yidden know that it’s a big wake up call for all of us to do Teshuva, lets take this confusing situation to heart and this time lets make a real Chesbon HaNefesh try to do Teshuva and get Moshiach here today.
The murder of the Tzaddikin was suppose to wake us up, both where Korbonos Tzibur with pure Neshomos, but unfortunately some have already forgotten the sad incidents.
Its so that all this comes in the summer known as vacation time, very sad, but we still have to remember that Hashem is upset with us to say the least, we have to be Mechazek ourselves and over come today’s difficulties and challenges that we all suffer from.
May Hashem see a change in us and hope to see the third Bais HaMikdosh before the fast this week yet.
Well, I hate alarmism and doom talk.
S&P made a trillion dollars mistake.
It was the same rating agency that rated all those loans that we later suffered for it.
Two other respected agencies disagree and kept the AAA status. Even S&P based its change of rating only because of the irresponsable last minute actions in congress not out of the USA ability to pay its debt.
Additionally we are having interest rates that are very low…so…lets do somenthing about the debt but let us no go seeking a bunker to hide! The media makes money out of the fears of people. I remember Y2K what a joke that was!
Kind of disappointed that Matzav would post an article with a title such as the above
Thanx for the uplifting good positive news! Gas prices going up another dollar? You Democrats never learn. The price of crude oil just fell $10 & the price of gasoline is expected to drop! Why do you Democrats/media keep pushing these lies?
Non of the politicians speak about the real problem, which is that all our products come from China, WE NEED STOP IMPORTING FROM CHINA!!!
Look on the bright side. The Tea Party won their facedown with the President. The billionaires won’t have to have a tax increase. The stock market is still going strong – no worries there. The only losers – you and me.
S&P stated specifically that what decided them was the lack of ability to work out a compromise and the long-drawn out feuding that preceded the passing. You don’t take something this big up to the wire and expect the rest of the world to say, “Oh well, they did do it at the last moment.” There was a very large chance that it wouldn’t have gotten passed in time, and S&P has to protect its investors.
The Tea Party may have won, but the rest of us have lost.
the economy will continue going down no matter what they do. ITS IN THE HANDS OF HASHEM.
this is the wake-up message from Hashem that its time for ALL YIDDEN to start moving to Eretz yisroel & making aliya. Hence showing Hashem that now-during the 3 weeks-we are not just in mourning for the bais Hamikdosh-we are yearning for it also & showing Hashem by making aliyah to Eretz Yisroel.
Hence we have 2 choices left from Hashem 1)we can make aliya out of our LOVE FOR HASHEM or 2)we can be forced by Hashem to leave this medina shel chesed-that is now ruled by bnei yishmael i.e. moslem & the last ones to rule us before mashiach comes-& have nowhere else to go but Eretz Yisroel CV
But us Yidden know that its a big wake up call for all of us to do Teshuva, lets take this confusing situation to heart and this time lets make a real Chesbon HaNefesh try to do Teshuva and get Moshiach here today.
The murder of the Tzaddikin was suppose to wake us up, both where Korbonos Tzibur with pure Neshomos, but unfortunately some have already forgotten the sad incidents.
Its so that all this comes in the summer known as vacation time, very sad, but we still have to remember that Hashem is upset with us to say the least, we have to be Mechazek ourselves and over come todays difficulties and challenges that we all suffer from.
May Hashem see a change in us and hope to see the third Bais HaMikdosh before the fast this week yet.
moshe shmiel is the problem
the kishke was burnt
To comments number 1 and 8:
Breathing is a wake up call to do teshuvah. If you are going to walk around thinking that every unfortunate accident is G-ds way to tell you that you are not doing your job, you are going to lead a flaky and silly life. Rather, make a conscious effort to do Tikkun Olam and do Teshuvah from the time you learn that you can do that. And that means give charity. The more often you give and the more that you give to pay pennance for your sins, the better off you will be when you are to meet our Judge.
why believe all the stupitiy the media has to sell they just come up with the crazyist analasis so that “u” should read it.