Effects of Government Shutdown Could Linger

By: Melissa Warren Email
By: Melissa Warren Email

"That put undue stress on us and millions of other Americans, and it's going to be a long time.  We're going to see lots of negative side effects months and maybe years to come," said Fritz.

BOWLING GREEN, Ky (WBKO) --The government shutdown is almost two days behind us, but are its effects still here?

Kelly Fritz and her husband were in the process of buying their first home and applying for a rural home loan through the USDA, when the government shutdown halted the loan approval process.

"We've expected when the government opened back up again that there would be a backlog of loans, and right now I think they're just trying to get back up, and some of their systems might not be working to their full capacity right now," said Kelly Fritz.

The Fritzes contacted their Congressman, Brett Guthrie during the shutdown, and are pleased he voted to end it, but hope the economy can recover from the damage already done.

"That put undue stress on us and millions of other Americans, and it's going to be a long time. We're going to see lots of negative side effects months and maybe years to come," said Fritz.

Will we? One local financial expert says the shutdown is estimated to have cost the U.S. economy $24 billion, and says raising the debt ceiling is just a band-aid on our economic wounds.

"We're still going to have a rocky fourth quarter. We're still going to have uncertainty. We don't have a solution. We don't have really what I would even consider a short term solution because January 13 is right around the corner, so from an economic perspective and a local perspective, I would imagine consumer confidence is going to stay down through the rest of the year," said ARGI Certified Financial Planner Jeanne Fisher.

Fisher expects congress to change its strategy, by looking to first put a cap on spending, then outlining a budget.

"They've really taken it back to the basics, which I like. They're saying, you know what, let's just sit down and work out a budget first and then we'll address the bigger issues," said Fisher.

Fisher says this new process may help lead to a real solution for balancing the budget. She says those worried about long-term investments should be less concerned, because overall, the market has been trending positively for most of the year aside from the recent dips during the shutdown.


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