Credit Downgrade Hits Home on High Desert

As Wall Street struggled with plummeting stocks on Monday, on the streets of Bend, people were speaking out about the credit downgrade. Some said they are trying to stay optimistic, while others said they are sick and tired of the lack of leadership in Washington, DC.

Late Friday, Standard and Poor’s downgraded the U.S. from a AAA rating to a AA+. Monday the Dow fell more than 600 points, getting close to 2008 levels.

“I feel completely confident it will come back,” said one Bend resident. “It’s jut a matter of time, after we get over this rough spot.”

One of the many reasons the U.S. credit rating was downgraded is because S&P was not satisfied with the debt deal passed by Congress, saying it didn’t do enough. Many Central Oregonians agree.

“All the politicians need to go home and lose their job,” another Bend resident said. “They are not leading out country. They need to go stand in the unemployment line, and see how they like that.”

“Politicians have made a mess,” another frustrated person said. “I’m retired Navy, and if we run a ship like that, God help us.”

Local financial experts at Valentine Ventures said people are bound to have an emotional reaction when stocks drop as fast as they did in the past few days. Investments take a hit, and people don’t know where to put (or leave) their money.

“People are not going to feel so safe and strong about their businesses, about their retirements, and their consumer confidence is going to take a hit,” said John Tapper with Valentine Ventures.

Less spending is already on the minds of many, as they watch the stock numbers dip.

“I think it’s time for all of us to kind of tighten our belts, as far as finances, and spend money on things we need, instead of what we just want,” said one Bend resident.

Meanwhile, President Obama attempted to reassure the nation Monday, saying the country will always be AAA-rated. But some financial experts said they believe the downgrade is not necessarily a bad thing. It may force lawmakers to take responsibility and more forward with better plans.

“It hopefully will push them to be motivated to come up with a solution that works for the country, because we’re talking about a change in our rating system after 60 or 70 years,” said Tapper.

Tapper said he does not believe the lower rating will go up any time soon, and it could be years until Congress gets their financial house in order, something many still think is possible.

“Id like to see Congress pull together with the president to find a good solution and move us forward,” said one Bend resident. “I think that can happen.”

Experts said stocks may balance out heading into the next week, but computer models hadn’t factored in the downgrade. So far, there are still many unknowns, leaving people uneasy.