Despite the coveted debt deal that was passed just before the deadline, stocks sank across the board. A realization that the US economy was no where near salvation caused investors to turn bearish. Although no new rating agencies downgraded US bonds since Egan-Jones downgraded it last week, Fitch and the S & P threatened to keep a close eye on the seriousness of the US government’s commitment to lowering the debt.
With many negatives, like lowered manufacturing and spending, investors had no choice but to turn away. Most analysts believe this is the beginning of the double dip recession, people like Nouriel Roubini predicted, that is if you believe the US ever climbed out of the “Great Recession” to begin with.
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