President Obama made it clear on Monday that the Standard and Poor’s downgrade of U.S. debt from AAA to AA+ would not change the status of the United States’ standing in the financial world. “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,” said the president.
He further stated, “It’s not a lack of plans or policies that’s the problem, it’s a lack of political will. My hope is that Friday’s news will provide a renewed sense of urgency.”
The stock markets were down sharply with the Dow Jones below 500 points. After the president’s statements, the markets rose briefly, but fell deeper into negative territory later with the Dow closing down 635 points, a 5.5% drop.