Markets Plunge: Should We Be Worried?

Tuesday, August 09, 2011

A businessman looks at an electric quotation board flashing the stock prices at a window of a security company in central Tokyo on August 5, 2011. Tokyo shares plunged 395.09 points or 4.09 percent. (TOSHIFUMI KITAMURA/AFP/Getty Images/Getty)

Stock markets went into a free-fall yesterday, witnessing drops reminiscent of the great economic collapse of 2008 that the world has still yet to recover from. The S&P 500 saw all of its stock fall and the Dow Jones industrials fell 634.76 points, the sixth worst drop in over a century. How informative is the S&P downgrade? What can we take from their assessment of Washington?

Louise Story, Wall Street and finance reporter for The New York Times, explains the impact this drop will have on the U.S. and global economies. She also sheds some light on who exactly are the decision makers at the S&P, whose credit downgrade of the U.S. contributed to markets plunging worldwide.


Louise Story

Produced by:

David J Fazekas

Comments [2]


I love the "Forget the Market" segment. This needs to be a national campaign. These free-wheeling bipolar gamblers on Wall Street should not be dictating public policy or local business enterprise. Break up the banks who are hoarding their capital and let local communities get access to that money. We should be going through a new green industrial revolution, we need it desperately. Public money has been squandered and the financial sector is not being held accountable for their irresponsible wreckless behaviour which is being allowed to continue. There is no excuse for this lack of investment. The US is full of imaginative, innovative people who are watching their opportunities evaporate because of the unbelievable greed of a select few who make their money not through work or innovation but through casino economics.

Aug. 09 2011 09:30 AM

If a balanced budget amendment was passed in 1995 would we now see upwards of $14 trillion in debt and a credit rating downgrade? Any second thoughts about cut, cap and balance which was so blithely dismissed last month? How about some political compromise on that proposal which addresses the debt in the long term but blocked by the Democrat leadership?

Aug. 09 2011 09:08 AM

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