The recent DOW Index plummet and the S&P downgrading of U.S. debt from AAA to AA+ has been followed by much finger pointing. The DOW has clearly been on an upward trajectory since just after the passage of the ARRA (stimulus package). The DOW plummets after weeks of infighting the two parties where Republicans refuse to budge on allowing taxes on the top earners to rise.
Republicans would like everyone to believe that S&P’s downgrade reflects “reckless spending” and absolve their policies of any wrongdoing. But it’s clear from S&P’s own statement that a disagreement on raising revenues is part of the problem.Continue reading