Tuesday, August 9, 2011

S & P downgrade could bring higher interest rate to SE Missouri

CAPE GIRARDEAU, MO (KRCU) - Southeast Missouri State University economist Bruce Domazlicky thinks Standard & Poor’s downgrade of the U.S. debt may lead to higher interest rate in order to attract investors.

Domazlicky says this could reverberate to the southeast Missouri economy.

"Anybody who wants to borrow money for buying houses or cars or businesses or agriculture, it’s going to cost them more," Domazlicky said. "That would probably be the main effect locally. The question is when that might occur or how much it is going to occur. We just don’t know right now. But that is a possibility."

Domazlicky adds college students will also feel the affect of the downgrade by increased interest rates on student loans.

Jacob McCleland, KRCU


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