How the downgrade of U.S.'s credit impacts you
Wed, 10 Aug 2011 19:47:14 GMT —
The stock market recently took a big hit and if you have a 401K, it affects you.
Darton College Economics Professor, Aaron Johnson says due to that hit, folks are pouring more funds into bonds, which is helping interest rates to stay low.
"401k's, they invest in the stock market. The stock market's taken a hit and a lot of it is the psychological effect of the credit downgrade but also the slow economic growth that's going on in the united state and Europe," says Johnson.
He says if those bonds start to sell off, then it could impact interest rates on credit cards and mortgage rates.