US Stocks had their worst drop in months Tuesday, falling to session lows in the final minutes of trading, after the debt ratings on Greece and Portugal were downgraded.
Greece’s credit rating was cut three steps to junk by Standard and Poor’s, the first time a euro member has lost its investment grade since the currency’s 1999 debut. The euro weakened and stock markets throughout the region plunged.
It was a rocky session as investors digested some encouraging earnings and a jump in consumer confidence against worries about sovereign debt, the Fed meeting, the Goldman Sachs hearing and financial regulation.
The Dow snapped a six-day winning streak, plummeting 213.04 points, or 1.9%, to 10991.99, suffering its worth decline in both point and percentage terms since Feb. 4.
(Source: WSJ / Bloomberg / WSJ)
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Note the similarities in fiscal policy between Greece and the United States (and many states, and especially New York, New Jersey and California).
They tax and spend, and eventually run out of money. And then, those who were more frugal tell them to spend less of social problems that everyone loves, because they can’t afford them.