Friday, October 18, 2013
How the shutdown squeezed corners of US economy
2. Category of issue: Economy
3. Level of issue: National
4 Article concern: The article conerns how the shutdown effected auto sales, retail sales and mortgages loans.
5. How does this affect families/individuals:
This affects consumer confidence in decreasing the choice of any loan borrowing or retail spending. In the mortgage loan aspect, consumer do not want to purchase any homes due to the potential higher interest rates. Same as with auto loans, consumers especially first time buyers will have difficulty purchasing with high interest rates. As I have witness now how retail sales have gone down with less customers in stores, the busy holiday season might not be good for forth quarter sale goals. Also for individuals who work in real estate, the market was good months ago with home purchases, now with interest rates on the rise have definitely alteredthose choices.
6 . My view: To a point I am not really shocked about the shutdown, because working in financing at my internship I saw how the Obamacare was already taking affect with people who were in debt. Now with the new Health Care Reform in effect, all I can really hope for in not to fall into a recession. Ultimitely, my thought process with the economic downfall right now is how good will job opportunities be for the next couple months ahead. With my students loans having to be paid off starting next year I pray the economy is not in bad standing point.