Possible effects of the S&P's downgrade in Main Street

QUESTION: What impact with the US downgrading have on the global markets?
And how will it impact Main Street?

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Quick ideas on the downgrade:

1  The effects in the global markets: Current knowledge status do not let you give an informed opinion. This extreme volatility is forcing many investors (individuals and corporations) to park their money, idling at accounts that yield little benefit. See BNY Mellon, which last week announced that some depositors, above $50 million, will be charged for having the money there.

2  The effect in Main Street: Some changes will affect it indirectly, so it will take a time to clearly see the effects (months, maybe a year). Changes in monetary policy (e.g., new rounds of so-called quantitative easing due to concerns of slowdown) can increase inflation. With positive inflation surprises come redistribution of wealth from some lenders to some borrowers (negative inflation surprises do the opposite). Such redistributions will increase bankruptcies, which means some providers (Main Street's) will not get paid, and some financial institutions will see that loans' quality will worsen, all of this in excess of normal problems.

Of course, there are also risks if we overshoot while fighting inflation due to the central bank's panic for previous high inflation: with lower inflation rates, holding cash is more appealing, so more depositors work partially outside banks, which see their earnings go down -- a few will run into insolvency sooner or later in excess of normal mortality of banks. This will mean that some Main Street customers will see more disruptions in their payments and other transactions (and possibly lose some money). Also, customers with a good credit history will see that reputation lost when switching to a new bank.

If stocks go down due to the downgrade, more people will lose money in the short term, and will have less to spend in Main St. Also, fear will rise, and that will change prospects for consumers, and that will take a toll too. This can be pretty quick, maybe weeks.

There are other ways for the downgrade to affect Main Street, of course.