Wall Street plunged more than 1.5 percent in early morning trading signalling a return to reality. With the debt limit raised and and borrowing continuing at a record pace, investors are jumping ship realizing that the U.S. debt is no where close to getting under control. Many investors are moving their money out of riskier investments and into Gold, Silver, and foreign currencies, like the Swiss Franc. Some analysts are advising to invest in commodities.
S&P – The Real Measure
Many analysts like Peter Lee of UBS see the S&P at 1250 as a last stand mark, if it breaks it can spell a turn to something much worse. As of 10:03 AM EST the S&P stood at 1238.86. The trend is clearly lower and although most analysts say not to panic and sell without a plan, there is a growing concern about the credit rating of US bonds and debt. Whether or not the S&P and Moody’s officially downgrades the US other agencies have. Most recently the largest Chinese rating agency Dagong downgraded the US credit 5 levels to A.
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