This whole brouhaha from the Obama admin about the S&P downgrade is a case of total misdirection. Thursday’s swoon was 500+ points and before the downgrade. Friday’s action was obviously short covering before the bell or we would have had another 2% down. Monday was just a continuation of selling because there was nothing coming from the WH over the weekend to show it understood the message. Then when Obama gets on the TV, after an hour delay past his original schedule, and he shows no sign of leadership and instead starts parceling out the blame to everyone named “Not Me” the market drops another 200+ points and finishes on the lows for the day.
It’s plainly evident that the leadership in Washington DC, led by pResident Downgrade Negative Watch ObamAA+, is clueless about what is spooking the markets.
It’s the fact that the Tea Party didn’t get anything of substance it really wanted out of the debt ceiling deal. The markets want to see sanity restored in Washington DC.