Dow Plunges More Than 600 in Sell-Off

The downgrade of the United States long-term debt to AA+ from AAA has global implications, said Alessandro Giansanti, a credit market strategist at ING in Amsterdam.

“We can see that this may force the U.S. to move more aggressively to cut spending,” he said, something that could drive the already weak economy into recession and weigh on the economies of all of its trading partners. “That’s the main driver” of the stock market declines, he said.

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Posted in * Culture-Watch, * Economics, Politics, Budget, Consumer/consumer spending, Corporations/Corporate Life, Credit Markets, Currency Markets, Economy, Globalization, Psychology, Stock Market, The Banking System/Sector, The National Deficit, The U.S. Government

2 comments on “Dow Plunges More Than 600 in Sell-Off

  1. NoVA Scout says:

    This is a wealth destruction tax imposed by the federal government to finance its incompetence.

  2. John Wilkins says:

    Yes. Because the government refuses to raise revenue to pay for its obligation, there is little confidence that they can actually honor its debts. We cut spending, we further decrease revenue, thus meaning further ability to finance the institutions that protect a free society.