Community | April 19, 2011 | 2 comments

S & P Debt Warning Sends Stocks Tumbling

source: http://landing.newsinc.com/shared/video.html?freewheel=90080&sitesection=usnews&VID=23403283

Standard and Poor's debt warning to the United States took it's toll on Wall Street Monday, as stocks dropped more than 1 percent by the closing bell. The credit agency downgraded U.S. debt to "Negative," arguing that America lacks a plan to adequately address the debt and that unless both parties can come together to agree on a plan, the United States could lose it's shining AAA credit rating within the next two years. "This is a serious issue," PIMPCO CEO Mohamed El-Erian told Reuters. PIMPCO, the world's largest bond, fund dropped its U.S. debt holdings earlier this year, Reuters reports. "No one can escape the implication of a further deterioration in the U.S. fiscal situation," El-Erian said. "And it's not just about the U.S. It's about the global economy." Meanwhile, Europe is also in the middle of a debt crisis and stocks there were down by more than 2 percent by the closing bell. Greece might have to restructure its debt by the summer and Portugal's anticipated bailout could be a bit rocky.

http://landing.newsinc.com/shared/video.html?freewheel=90080&sitesection=usn...
  1. groups:
    Community,   Business News & Analysis
  2. tags:
    Debt,  Stocks
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2 comments // S & P Debt Warning Sends Stocks Tumbling

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