Sell Off On Wall Street: Reaction to S&P Statement
BOSTON (CBS) -- A sell-off was seen on Wall Street following a warning issued by Standard And Poor's. In its report, S&P said it might lower its credit rating on U.S. government debt sometime over the next few years, if Washington fails to move quickly to cope with the country's mounting debt.
The Senior Economic at ITG Investment Research, Steve Blitz, found the timing of the report "curious," saying the timing is seen as a move to push the political posturing off dead center. Blitz says "sometimes, the events in Washington begin to take on the aura of a hostage negotiation."
WBZ NewsRadio 1030's Anthony Silva reports.
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Another expert with whom Anthony Silva spoke, Phil Dow, the Director of Equity Strategy at RBC Wealth Management, says he thinks some investors misinterpreted what the S&P was saying. Dow says the outlook was downgraded, the credit rating was not downgraded.
But Dow agrees the S&P issued a warning shot that the deficit must be dealt with or it could eventually force the U.S. Government to pay more to borrow money when it issues bonds.
