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.