On Monday, despite reassurance from President Barack Obama, U.S. stock markets fell sharply following a downgrade from the Standard and Poor’s rating service. According to the S&P downgrade, the rating’s company concluded that U.S. debt was a riskier investment than the debt of Canada and France, among other countries.
The president, with confidence, said, “Markets will rise and fall, but this is the United States. No matter what some agency might say, we always have been and we always will be a AAA country.”
Market rose briefly after the president’s statement, but fell sharply below 600 soon afterwards. Many investors fled the stocks, placing money into commodities such as gold, which was selling at over $1700 an ounce. Other investors moved money into bonds.
