Monday, April 18, 2011

S&P Fires Warning Shot on US Fiscal Health

Standard & Poor’s cut its ratings outlook on the U.S. to negative from stable on Monday, lighting a fire under Washington’s deficit-reduction debate and sending stock markets sharply lower. The rating agency effectively gave Washington a two-year deadline to enact meaningful change, just days after House Budget Committee Chairman Paul Ryan and President Barack Obama each outlined their plans for slashing debt.

Finally some news to send a JOLT to the markets (As if World War, Japanese Environmental Holocaust, European debt default, US budget insanity wasn't bearish enough) , this morning the reaction in the markets took the form of giant dumping.

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