The U.S. Stock Market Plunges 634 Points In One Day

The Dow Does A Diver

August 8. 2011

Investors are fleeing the U.S. stock market in droves, as the Dow Jones plunged 634 points today, in response to Standard and Poor's downgrading America's credit rating for the first time in history. This was not a good development for the nation and not something the government should ignore, as some in Washington are currently doing. For almost a century, America has enjoyed a great credit rating with the storied agency and this lack of confidence will have greater repercussions at home and abroad.

Barack Obama

As the Judiciary Report stated on August 5, 2011, Standard and Poor's reserves the right to downgrade America's credit rating even further (U.S. Credit Rating Downgraded For The First Time In History). Two days later, on Sunday, August 7, 2011, Standard and Poor's stated, another downgrade could occur in as soon as "six months." The Obama Administration needs to get to work, or said scenario is likely, if things remain on their current trajectory of trouble. This is truly a shame, as it didn't have to happen.

RELATED ARTICLE

U.S. Credit Rating Downgraded For The First Time In History

U.S. Credit Rating Downgraded For The First Time In History

A Precedent The President Could Have Done Without

Barack Obama

Standard And Poors (S&P) has downgraded America's once sterling AAA credit rating to an AA+ in news not welcomed by U.S. President Barack Obama and his administration. The $2.4 trillion increase to the U.S. debt ceiling is partly to blame for this historic decision, coupled with no proper tax increases or significant government budget cuts.

It was not a good precedent for President Obama to set. Had Obama simply done what the Judiciary Report has stated for the past couple years - raise taxes on the rich - this would not have happened, as the revenue streams would have begun already and exhibited clear and undeniable intent to reduce the deficit. What's worse is S&P has reserved the option to decrease America's credit rating even further.

Some have tried to spin this news and they should not. Delusion and denial is what created this problem in the first place, in not facing reality and taking positive, proactive action to address the nation's debt. To spin this negative, is the equivalent of a student bringing home a B grade, when they could have received an A had they applied themselves and trying to convince their parents the former is better than the latter.

Congress and the White House have gone out of their way to protect the rich, at the expense of the middle class and the poor. They would do well to remember, there are more middle class and poor in America, than rich, which means more votes to remove politicians from office and replace them with others.

Enough with the tax cuts for the rich, as it is damaging the nation in so many ways. It's time to raise taxes on the rich - a proven, time tested method of bringing in revenues to cash strapped governments. It won't make the rich poor, but they'll have a little less and it will help clean up the financial mess.

RELATED ARTICLES

Obama's Poll Numbers Implode Into Disaster

When It Comes To Debt The Obama Administration Has The Mindset Of Gamblers

Obama Calls For Job Summit

Artificial Growth - Part 2

Artificial Growth

The Benefits Of Government Cost Cutting

The Republicans Say Obama Has No Economic Plan, Only Speeches

Officials Officially Pronounce Obama's Stimulus A Massive Failure That Added Billions To The National Debt

A Majority Of Americans Feel They Were Better Off Before President Obama

Gallup Poll: Any Republican Would Beat Obama If The Presidential Election Was Held Today

Officials Officially Pronounce Obama's Stimulus A Massive Failure That Added Billions To The National Debt

America's National Deficit Increased An Unprecedented 35% Under President Obama

Rivals Use Bad Economy As Primary Tool In Their Bid To Oust President Obama

Billionaire Tells Obama To Resign Over The Economy

New Negative Jobs Report Is Bad News For Obama

IMF: The End Of American World Dominance Is Nigh

The Bell Is Tolling, But Is Washington Listening

Barack Obama

The International Monetary Fund, which oversees the global economy, sent out a stern pronouncement this week, sure to shake up Washington to its core. The IMF stated the "Age of America" will end by 2016, to make way for Chinese dominance in the world. If you ask me, it has already happened, especially when you take into account the massive amount of U.S. debt China holds and their meteoric rise in the area of global commerce.

While China has worked hard for its place in the world, one can't help but lament America's fall, which occurred thanks to the reckless and villainous policies of former President, George W. Bush. He is squarely to blame for the nation's unprecedented descent in the world, which has been made worse by President Obama's poor policies.

George W. Bush

Washington's refusal to tackle the national deficit, rein in criminals in the corporate sector, who continue to wreak havoc and end the costly wars in the Middle East and Libya, have many financial agencies and authorities, such as the IMF and S&P writing the nation off as the world's preeminent superpower.

America has not even been the dominant empire in the world for a significant period of time, in comparison to other nations in world history who've had that crown. The British, Roman, Babylonian and Egyptian empires lasted far longer at number one than America has thus far. To lose the top spot at this relatively early juncture is regrettable and a painful lesson on what happens when a government goes too far. It is not too late to turn things around, but the White House and Congress refuse to engage in any meaningful fiscal discipline.

RELATED ARTICLES

S&P Changes America's Rating To "Negative" Highlighting Obama's Failure To Tame The Deficit

How George Bush Destroyed The U.S. Economy

Obama Could Rebuild American Cities If...

If Obama Had Ended The Wars And Not Started Another One...

Gallup: Unemployment Higher Than Obama Admitting

GDP Data Shows The Recovery Failed

U.S. Jobs Lost Not To Be Replaced Until 2020

Joe Biden: We Can't Replace The 8 Million Jobs Lost

The Government Twists Jobs Report To Hide Losses

What Is Obama Going To Do About The Deficit

Obama's $1 Trillion Bill Passes In Congress

Bernake Defends Reckless Spending

The Benefits Of Government Cost Cutting

Obama Calls For Job Summit

S&P Changes America's Rating To "Negative" Highlighting Obama's Failure To Tame The Deficit

Barack Obama

Prior to and at the beginning of President Barack Obama's term in office, the Judiciary Report warned about the national deficit and overspending in government. Though the White House and just about every department of the U.S. Government has been logged by site statistic's program Traffic Facts, as readers of this website for years, the warnings went unheeded and now the chickens have come home to roost.

Veteran financial agency, Standard and Poor's, has downgraded the U.S. economy's debt load to "negative" setting a 20-year low for America. The S&P stated of America, "The nation's deficit rose to 11% of total economic output in 2009."

President Obama has added more to the national deficit than any other president in American history. Therefore, regrettably, Obama is to blame for this terrible rating, as he unwisely spent enormous sums of money. Another side effect of the White House's poor fiscal planning is prominent nations are gathering with the goal of dropping the U.S. dollar as the world's premier currency.

RELATED ARTICLES

Bush To Leave Office With Record Deficit

Obama's Soaring Deficit Creates Credibility Issues

Obama To Address U.S. Deficit

Obama Disowns Deficit

Obama Budget Deficit

Obama Vows To Cut Deficit

Obama Wants Americans To Vote On Feelings Not Facts

The Cost Of Obama's Latest Bill = $1 Trillion