Stock Market Plunges After U.S. Credit Rating Downgrade
Can the latest stock market plunge be blamed on three people? They are the committee from Standard & Poor's who are responsible for downgrading the nation's credit rating from AAA to AA+. That sent worldwide financial markets into a tailspin.
Wall Street reacted to the first credit downgrade in U.S. history with another massive stock sell-off. Now there's growing outrage at the S&P for taking the drastic step, which many people fear could push the country into another recession.
The stock market fell over 250 points at Monday's opening and was down over 600 points during the day.
President Obama went on network TV to urge calm.
"Markets will rise and fall, but this is the United States of America. No matter what some agency may say, we have always been and always will be a triple A country," said Obama.
Treasury Secretary Timothy Geithner blamed the latest economic crisis directly on the S&P.
"The S&P has shown really terrible judgment and they've handled themselves very poorly and they've shown a stunning lack of knowledge," Geithner said on the Today show.
At the center of the controversy is S&P's so called three-man sovereign committee—John Chambers, David Beers, and Nikola Swann.
The 55-year-old Chambers lives in Manhattan and get this—he doesn't have a college degree in Economics. He majored in English Literature at Grinnell College in Iowa, and has a Masters from Columbia in English Literature, not Economics.
David Beers, another member of the S&P's gang of three, was interviewed on Good Morning America.
George Stephanopolous asked Beers, "No second thoughts?"
"About our decision? Absolutely not," replied Beers.
With unemployment stuck at over 9%, there are new worries it could get even worse. But take a deep breath. There are jobs out there and INSIDE EDITION found out where they are.
INSIDE EDITION spoke to Steve Weber, who runs Access Staffing, a job placement company. He says technology, accounting and finance, and health care are three areas where jobs are booming despite the roller coaster economy.
"There are things happening. People are still getting excited. Companies are always looking for good talent," said Weber.