Well I guess it was inevitable. The clamoring and incompetence of our government to make a plan that puts any sort of dent in our debt has lead to us being downgraded from a AAA to an AA credit country, which puts us in the same bracket as Japan, China, Belgium, and Qatar. To top it off they list our outlook as negative, which means we may likely be downgraded further.
This means our government will have to pay a higher interest rate to bond investors and the bonds are considered a riskier asset. Investors would instead likely look to the UK Germany, France, or Canada with their AAA ratings. A country that used to be near the top is now dwindling away into nothing.
The stock market took a pretty large dive the next day and has been creeping slowly downward ever since.
The Dow Jones Industrial Average plunged 634.76 points, or 5.55 percent, to finish at 10,809.85, well below the psychologically-significant 11,000 mark. The move marks the blue-chip index’s biggest point and percent drop since Dec. 1, 2008.The S&P 500 plummeted 79.92 points, or 6.66 percent, to close at 1,119.46, its lowest close since Sept. 10, 2010.Nasdaq sank 174.72 points, or 6.90 percent, to end at 2,357.69, its lowest close since October 4, 2010.