and by the way, the ratings agency is standard and poors. who is going to listen to a company whose name translates to average and below average. this is a big nothing burger. >> global markets in turmoil. >> high and anxiety. >> a manic monday. >> the dow plunging throughout the afternoon. >> we are down more than 400 points on 500 points. >> the dow jones industrial closing down 634 points. >> another horrendous, reched, you fill in the adjective day for stocks. >> jon: crash-a-trocious. diarrhea-tastically. that's an add verb. so they downgraded and the stock market tanks. wait a minute. why would that happen? standard and poors, that name sounds familiar to me. >> these are the guys who gave the clean bill of health to the mortgage securities that were toxic. >> jon: no, no, that's not it. standard and poors. i think it was a cop show. wasn't it? detroit crime just got downgraded. pretty sure that was standard and poors. >> they were giving triple-a ratings, gold ratings in effect to mortgage-backed securities that were worthless. >> jon:

standard and poor's rating the united states now as aa-plus with a negative outlook. the decision by standard and poor's has launched criticism with not only did they make the wrong call, but that standard and poor's basic math may have been wrong in calculating what they needed to calculate in order to decide on this downgrade. later in the show we'll be joined by jerad bernstein, former chief economic advisor to vice president biden, we'll get jerad's help. we'll also be joined by some of the top economic reporters in the country that have been covering this action today and the controversy that surrounds it. after the markets closed, an abc news report about the possibility of a downgrade frankly sent seven million stomachs lurching into 7 million throats. the u.s. government was bracing for a possible downgrade of the credit rating. but then what started off as an alarming story frankly became a weird story when a third government official told abc s&p had "made a serious mistake in its analysis base ed on flawed math and assumptions and the united states was fight

standard and poors. stupid.ou're suggesting our political system is reckless populated by ideological children. well, you don't watch the sunday morning news shows. >> i think it's failed presidential leadership. >> this is without question the tea party downgrade. >> the other side of the aisle had been unwilling to reform the programs. >> the tea party downgrade. >> every single time... senator, you voted to increase the debt. >> the debt already. >> jon: if this is. >> the truth of the matter, however (talking statement). >> gentlemen. >> jon: shut up, shut up. i'll spray you like the dogs in my neighborhood who hump for pleasure and of course profit. ix-nay. on the. andards and ores. this is hard. by the way standard and poors, before you blame one party over the other, nobody was happy with the recent debt ceiling deal that seemed to indicate our political parties' unwillingness and inability to solve problems was true. >> when you look at this final agreement we came to at the white house i got 98% of what

thank you very much tom thank you for joining us standard and poor's s. and p. in their eight page report justifying this downgrade wrote and i quote we have changed our assumption on this there speaking of the probability that the bush tax cuts will be extended because the majority of republicans in congress continue to resist any measure that would raise revenues a position we believe congress reinforced by passing the act why was that indictment of the republicans completely ignored by the mainstream media and most of the economists who are on t.v. commenting about. well it's become a habit in our country to fold the tent in the face of what the big corporations and the wealthiest amongst us one they've enjoyed by far the largest tax cuts in american history over the last thirty years and especially since two thousand they don't want anyone to mess with their wonderfully reduced taxes so they've made it impossible for most politicians who depend on them for money to say anything about raising taxes so the republicans push it and the democrats cave in looking

standard and poor's tonight has downgra downgraded's america's tripaaa credit rating. the decision prompted fierce criticism that standard and poor's not only made the wrong call, but that standard and poor's basic math may have been wrong calculating what they decided on this downgrade. we'll get jared bernstein's help understanding this. we'll get reaction over the controversy and what surrounds it. after the markets closed, an abc news report about the possibility of a downgrade set several million stomachs lurches into several million throats. abc's white house correspondent reported that the u.s. government was bracing for a downgrade by standard and poor's. citing two u.s. government officials. then what started off as an alarming story became a weird story when a third government official told abc the s&p made a serious mistakes based on flawed math and assumptions, and the administration was fighting back. was it ever fighting back. john harwood telling us after the s&p notified the administration at 1:30 eastern time they were going to downgrade, the treasury d

downgrade, standard and poor's aaa rating is carried by only four economies, including germany. it indicates a country is extremely reliable and interest on bonds may be lower than 3%. the new status will almost certainly have repercussions for the u.s. belgium, for example, must pay 4% interest on its bonds. belgium has not been able to form a government since 2010. new zealand also has aa plus. many economists say that while the u.s. is no longer on top of the class, it is stronger than other countries. china is rated slightly lower than the u.s., at aa minus. japan, the most indebted economy in the world, only has to pay 1% interest, because the country's citizens on such a high proportion of its debt. perhaps the u.s. will not do badly. economists suggest it might have to offer 3.5% interest in future instead of 3%. historically, that is still a lower rate. >> some analysts are calling it a perfect storm, with the u.s. debt crisis coming just as the eurozone struggles to get to grips with its problems. >> greece, ireland, and portugal have all received a big bailout packages.

standard and poor's is saying credit downgrades. there is some likelihood we will see that in the next month. i think it is not the question of technicalities. it is more a question of decision making, and as far as the european union is concerned, a lack of leadership. there are hard decisions as far as the european financial stability fund is concerned. friday afternoon, we have had this letter of the commissioner. immediately, the market reacted very decisively. on top of this, we have the euro debt crisis. we have already seen a few big bailouts. what else can leaders realistically do? >> i think we are coming obviously to an end as far as government action against the market is concerned. historically, it is clear that whenever governments were fighting against the markets, in the and they always lose. as far as moving a downgrade, as far as the debt crisis in europe is concerned, i think we might see the and as such. >> you have been talking about disunity. should germany be taking the lead in this case? >> germany has a crucia

standard and poor's down grated fannie mae and freddy mac. the down grade may force anyone looking to by a home -- one said there is a bigger picture to consider. >> this is not the end of the world and remember america is still the gold standard. nowhere else to invest in quality debt instruments. bonds that pay interest. >> reporter: analysts said traders are shifting out of the bonds and european banks are snapping up u.s. debt to shore up for a finance crisis but there is still debate on whether the credit rating will have an effect. jade hernandez, ktvu channel 2 news. >> thank you. >>> we have more details now on what is behind the sell off and more perspective on the situation. ktvu's tom vacar joins us live in the news room. we expected the was going to be a sell off but do you think this big of a sell off was a surprise? >> reporter: no. if it happened friday, standard and poor's lowered the rating friday after the market closed it would have been bigger on friday so people had time to think about this. when you are down more than 50

he fired standard and poor's after the ratings firm downgraded l.a.'s $7 billion investment portfolio from triple "a" to double "a." >> we balanced this budget in the face of the toughest times in our city's history. and so in the face of all of the skeptics that thought it wouldn't be possible. so we are cutting our relationship with s&p. >> reporter: los angeles isn't alone. standard and poor's downgraded the investments of 14 states, cities and counties, two others joined l.a. and fired the firm. >> they have no credibility with regards to how they decide to rate. i think that that is very questionable. >> reporter: state and local governments hire ratings agencies to grade their fiscal health, a kind of seal of approval to attract investors. s&p said it made the recent downgrades because the cities and counties had significant exposures to u.s. government securities. that means they were heavily invested in u.s. treasury bonds. when s&p took the controversial step to downgrade the u.s. government's rating, the trickle down effect was to lower the v

has had a triple a credit rating from standard and poor's until justice. at does the plus rating do for you. here's lauren. >> hey, molly in an unprecedented move. standard and poor's said america does not deserve a triple a credit rate put it to a double a plus . putting it on parwith counselries like pelgium. s&p writes effectiveness and stability of america essentially washington didn't raise the debt ceiling fast enough or cut deep enough. interest rate will go up for the government and you. that means your mortgage and credit rate will cost you more. gross domestic product that slowed in the quarter could go down . slow down means fewer workers and finally your investments may get pinched. the dow lost 700 points and that was before the downgrade. your pension plan and ira and 401 k show significant losses as the stock market determines how to react to the first ever downgrade to the united states credit. it might be a good time to talk foyour financial advisor and. consumer staples perform better in uncertain economic times. >> depressing but helpful

the headline i read says standard and poor's is blaming the republicans. ought they'd blame anyone. >> reporter: he may be surprised to hear the u.s. now has a credit rating lower than germany, united kingdom and canada. that's because investment experts expect the down grade to be extremely damaging. warning, pension funds that carry mandates of aaa rated holdings will be forced to several government issues and that could trigger a surge in yields as prices plummet. >> the knee jerk reaction is the absolute worst thing we could do. with that, we'll just start a fire. >>> economists at wells fargo securities estimate there's a 1 in 3 chance the country could slip back into a recession. the federal reserve may take steps to prop up the struggling u.s. economy when the board meets tuesday. s&p says another credit down grade is possible within a year to 18 months. >>> just about the same time s&p downgraded the debt, corporate accountability, the government is focused too much on helping big businesses like the banks at the expense of poor americans. >>> a fam

standard and poor's historic downgrade of the nation's credit rating triggered a stomach-churning plunge on monday. the uncertainty continued overnight as asian stocks clawed back. u.s. market futures have fluctuated between up and down. and nbc's steve handelsman has more. >> reporter: in his first reaction since standard and poor's downgraded u.s. bonds late friday, president obama rejected the aa-plus rating. >> no matter what some agency will say, we've always been and always will be a aaa country. >> reporter: but the dow lost 5.55%. the s&p 5006.66%. the nasdaq off 6.9%, the biggest drops in years, gold was up to an all-time high, $1700, a sign investors are scared. by last week's debt ceiling deal, not big or bold enough. no one touched entitlement spending, no one fundamentally touched tax reform. knoll republicans and democrats show an ounce of backbone and actually do what's in the interest of the american people, rather than what's in their immediate political interest, i can't argue with s&p 500's conclusion. >> our problems are imminently solvable and we know what we have to

and standard and poor's cut itseratey of fannie mae and freddy mac. this was the worst one day point loss for the dow jones industrial average since december of 2008. every stock in the standard and poor's fell today. analyst plame the down grades ask the high debt burdens in the united states and europe. the dow jones industrials closed down 634 points to 10,809. the nasdaq is down 174.72 at 2,357.69. for a look at the fall out from the free fall we go to our consumer editor tom vacar. >> reporter: this is wall street. here in the real world with millions of people depending on their investments, it seems champagne dreams are giving way to beer wages. >> it's down too much. doesn't make sense to be down this month. it's a panic. >> reporter: much of today's crisis was due to cash hungry institutions. >> that means they sell their winners and that's why you see good stocks, great companies with big hits today that don't bear a resemblance to the value of their company. >> america's still the gold standard. nowhere else to invest in quality, debt destru

plause plause >> mike: let me say after friday's view that standard and poor's downgraded the credit ting for the first time ever there is a scramble to understand and interpert. the news came out of the a tepid jobs report. even that was tained by revelations that it was largely because so many people simply quit looking for a jobb. maybe that is not the entire story. in a week of bleak economic news, president obama celebrated his 50th birthday with a 35,800 dinner in chicago and then blew out the candles on the cake and the walls of the white house with stevie wonder and tom hanks and a listers from hollywood. some commentors gave the president a hard time about lavish parties at a time when 16 million americans are not without job. i congratulate the president for a 50th birthday. for his obvious effort to really stimulus our struggling economy. because now hopefully none of the guests flew in a corporate jet to attend the gathering because i know if they did, he would give them a stern lecture of as to how that would be x. no doubt at organic sandwichs and had tofu for dessert. h

. >> according to mortgage experts, the down grading by standard and poor's was a logical next step after s and p down graded u.s. stats last friday. >> there is a serious problem. >> john holmgren is the former president of the california mortgage bankers association. currently open advisor. >> this is going affect the cost of credit and the long run. koit affect our economy in the long run, people have less confidence in the u.s. economy. that is implications for home prices among other thing autos fannie mae and freddie mac own, or guarantee about half of the u.s. mortgages and account for nearly all of the loans. their down grading expected to push interest rates higher, but so far it's had just the opposite affects. john lawson is the senior vice president for credit and risk. with san ramone's mortgage. >> for 10 year, 30 year fix rate, adjustable rates are actually going downward by as much as five to seven basis points today this, is having a positive affect on people who want to refinance or purchase a first home. >> that may be a short term benefit to some, larger impacts may be

plause plause >> mike: let me say after friday's view that standard and poor's downgraded the credit ting for the first time ever there is a scramble to understand and interpert. the news came out of the a tepid jobs report. even that was tained by revelations that it was largely because so many people simply quit looking for a jobb. maybe that is not the entire story. in a week of bleak economic news, president obama celebrated his 50th birthday with a 35,800 dinner in chicago and then blew out the candles on the cake and the walls of the white house with stevie wonder and tom hanks and a listers from hollywood. some commentors gave the president a hard time about lavish parties at a time when 16 million americans are not without job. i congratulate the president for a 50th birthday. for his obvious effort to really stimulus our struggling economy. because now hopefully none of the guests flew in a corporate jet to attend the gathering because i know if they did, he would give them a stern lecture of as to how that would be x. no doubt at organic sandwichs and had tofu for dessert. h

default did not do enough to cut back on spending standard and poor's says the government is spending too much and has too much debt so a downgraded us standard and poor's says that washington didn't raise the debt ceiling fast enough or cut spending deep enough and s. and p. cited rising public debt policymaking uncertainty and failure to deal with spending on entitlements as major factors in its decision so why is that the standard and poor's is calling out the republicans and all these local t.v. stations are calling out the spending but the problem with the american media by and large fickle of the mainstream media is something called access and dirty little secret of the media is that if you're doing a kind of show that only works if you get big name republicans on it then you have to be willing to suck up to them and not call them out on the lie on the air this is why networks and t.v. performers end up worrying about not losing their position in the competitive media landscape or saying something that would alienate their sources so they back off from hoarding the difficult tru

but standard and poor's said all along they wanted to see $4 trillion in cuts in the spending cuts, reachede recent debt deal, which only came to $2.5 trillion. and standard & poor's basically saying it doesn't have a whole lot of faith in the current political makeup. the united states. the bank of america saying it thinks standard and poor's will issue yet another downgrade in the next few months if that bipartisan committee that is going to be put together through this debt deal doesn't come through with bigger cuts than what is expected. and that would further royal the markets even then some. and the interesting thing the treasury is expected to hit hard. bond, the u.s. yields on u.s. treasuries, they have not moved that much and in fact they have gone even lower so interest rate, the very theme that is impacted by a credit rating downgrade is still very low. there is some hope, they don't go up a whole lot. and interest rates at extremely low levels, not a lot of borrowing. home sales very weak. and banks have been holding on to their money quite tightly. it is lard for consumers and

the markets react to the decision day for the weekend as standard and poor's downgrade the u.s. the noise from its aaa rating and that we really saw a loss of confidence that the european central banks that scene yesterday to prop up its the in spite of president obama gave it just trying to calm the markets they thought america was a aaa country the investors don't seem to be buying that at the moment we've heard from a lot of the trade is that much of what we're seeing at the markets and then maybe it is sentiment driven. to really having an impact driving the market down that's what we're seeing at the moment. all right thank you let's take a look at. the latest figures on the markets. now as sarah just said russia markets are heading towards heavy losses the r.t.s. is over four percent or my sex is losing almost two and a half percent there let's take a look at some individual share moves on to my sex and there she majors are the top losers gastro ever all snuffed out both deep in the red bull a producer will tell me is gold is also trading in the guts of territory this by go

credit by the leading rating agency standard and poors. how will world markets react? coming after an awful week on wall street, what does it mean for you and the millions of americans who are out of work. >> we are going to get through this. things will get better. >> schieffer: but what is the path to better now? we'll ask the president's trusted strategist david axelrod. and for context we'll check in with key players on the left and right, howard dean, the former chairman of the democratic national committee, and republican senator lindsey graham of south carolina. it's all ahead on face the nation. captioning sponsored by cbs "face the nation" with cbs news chief washington correspondent bob schieffer. and now from cbs news in washington, bob schieffer. >> schieffer: and good morning again. david axelrod is in buchanan michigan this morning. mr. axelrod, welcome to the broadcast. >> thank you, bob. >> schieffer: for the first time in the long, proud history of america, u.s. securities are no longer considered the safest place to invest your money. i just want to as

ladies and gentlemen children of all ages the ringleader has spoken about even with standard and poor's stamp of disapproval over the debt ceiling debate why is the political circus still in town. and it's a bird a plane oh wait no it's super congress their mission to save the day and the u.s. dollar defense and health lobbyist act as kryptonite in this budget battle. and what was once of peaceful protests now are rotting what some are calling an arche in the u.k. so what is exactly behind all of this violence. all right it's monday august eighth four pm here in washington d.c. i'm laurin lister and you're watching our t.v. so the stock market is taking a plunge today what is going on and where is this headed this being the global economy of the u.s. economy will first the obvious let's look at the u.s. lost its aaa credit rating on friday was downgraded by standard and poor's late friday the ratings agency also downgraded mortgage giants fannie mae and freddie mac. today it inspired these mainstream media headlines across the country in response markets brace for downgrades told. how b

by fundamental and by fundamentals let me ask you about standard and poor's decision to downgrade the credit rating for america do you think it was the right move. sorry could you repeat that question again if not you can see a problem with the connection. i wanted to ask you about standard and poor's decision to downgrade america's credit rating do you think that was a wise move. yeah. if you take the credit rating agencies they always like to see themselves as some let's say hard scientists but on the other hand if you do want to see what they really do that is mostly something like out and a lot of politics so what standard and poor's had to do here they had to pick a moment but it was highly convincing that they did for us so i think the real reason for downgrading them right now was only that reason to have their credibility in the market. for you shouldn't. exaggerate the meaning of this signal on the other hand of course it is a signal it is something that had to be anticipated and it was anticipated by the markets so you can therefore i would say this is just something. well w

and an update on our top story, the downgrading of the united states aaa rating by standard and poors. apparently president barack obama was briefed in advance of this intention and he has been continuing to receive updates from top aides according to an administration official, according to the reuters news agency. so president obama was briefed in advance of the ratings agency standard and poors decision to downgrade the united states from its aaa credit rating. that comes as g-7 finance ministers are set to meet to discuss euro's debt crisis. european politicians must get ahead of the curve to overcome the crisis. says that in itself is a problem. >> it's all very well talking about getting ahead of the curve but how do you do it buzz what is the curve and the scoif this. when you deal with big countries like italy, if they run into trouble and find it difficult to service that debt there is not an existing rescue fund that is big enough to help them. so what happens? and i think that level of uncertainty about what might happen if italy really gets into trouble has not been put to

these are big things to come out and tough for investors to deal with it. >> standard and poor's may not be done downgrading and bank of america believes standard and poor's will come back in the fall and downgrade the u.s. credit rating even further. it does not feel that that bipartisan panel will come up with deep enough cuts. they want it to go well beyond the $2.5 trillion that the debt deal talked about and they want $$4 trillion in cuts to come out of that. we could see credit downgrades. if the economy shows weaker signs, you can expect to see selling continue on wall street. >> it is getting depressing. david, thanks for joining us from kcbs and cbs money watch .com. >>> first, he said he had no intention of running for mayor. but now san francisco in rim mayor ed lee has apparently changed his mind. a couple of hours ago, the former city fater announced he is -- administrator announced he is joining the race with a whole lot of others. anser hudson has more from sfan on how some are reacting this afternoon . >> reporter: good afternoon, frank. here is the list of the 35 pote

spark another black monday on international stock markets leaders criticize the rating agency standard and poor's accusing it of double standards and promise to establish a european agency in response or daniel bushell has details. we use downgraded trust the rating agencies to junk status the standard and poor's the agency admitted a two trillion dollar miscalculation when they saw it in its downgrade they claim to have the world's best minds working for them hasn't really surprised people here because most know that america has had unsustainable for many years now with everyone apart from the rating agencies it seems and the day before firms collapsed in the credit crunch they still had aaa ratings on all those companies now that made the agencies lose their reputation but people lost their whole savings and triggered the world recession the followed e.u. leaders are also furious about some peace double standards they held with the white house before this decision they briefed them about it when it would take place what would happen and that's in the white house to prepare a response to the med

legalized downgrade standard and poor's is coming under scrutiny as suspicions are raised over the side of trading before the jamming regime change was officially announced and as the markets rebound after parties down the great slump making a question i'd just hold a meeting agencies give out those all important credit scores. could go much to commemorate to notice where there were no.

with the explosion of interest rate perceived risk that was triggered when the moody's and standard and poor's downgraded the debt sovereign debt of greece more than a year ago just when the e.u. member countries that you council agreed on a rescue action for greece and that was a politically motivated motivated act in my view driven by the fear that the dollar was about to go into freefall the chinese were talking about the. disinvesting from dollar assets u.s. treasuries and so forth and strengthening their profile within the euro so just at that moment standard and poor's downgraded greece to junk bond status and that triggered the explosion of interest rates which makes the euro land dept of the of these countries portugal greece and so forth virtually unplayable so a solution has to be found that deals with that and i think they of course no doubt that they're causing many waves in the financial world these days lie from frank part political analyst and author of william and out my theory thank you. tehran says it's ready to resume international negotiations on its disputed nuclear progra

standard and poor's is trying to who they should be looking. to the future of the way they are being in the mainstream media. the tables of turning on standard and poor's there's not a being widely slammed for is this mission but also faces a legal inquiry found alice called vantages says is necessary because the downgrade may have been wrong for the lead straight is. there is clearly an element of legitimacy to investigating insider trading there was an awful lot of rumor mongering that was going on early the downgrade in this case the rumor turned out to be correct and there was a huge swing in the market on friday prior to the downgrade be issued so clearly some people knew in advance and the question is who are those people and how did they get that information because it is clearly improper under u.s. law to trade on material nonpublic information if you have it so to that extent the inquiries would you. now whether the white house agrees with this new credit score or not as one number the company avoided the fourteen trillion dollars in de

well certainly a downgrade even a slight notch by either moody's or standard and poor's would send the dollar down it would destabilize commodity prices and it would further confirm the general sense globally. has felt that the overall perception of the u.s. as an economic superpower able to manage its fiscal house has been severely undermined but even if there is no downgrade in the ratings status the overall inability of the u.s. political leadership to mount a united front and head on address these issues has the early damage u.s. economic credibility and currency policy in asia and in europe certainly japan hailed the agreement that was signed today but china was rather muted and russia has been openly critical of europe's is a very good position because of its very large gold reserves both in private hands of those of the central banks and even though the euro was beset by its own new euro zone economic problems there will be only one place for china and russia to turn in terms of restabilizing the distribution of their currency holdings and that will be to the euro and if that oc

that it made that means that when standard and poor's moody's and fitch were giving triple a rating on the collateralized debt obligations to the c.d.o. those were primarily backed by fraudulent mortgages something they bed s. and p. fitch and moody's were all warned about and so they all deliberately adopted a pop the financial version of don't ask don't tell and there's an infamous s. and p. memo from two thousand or two thousand and one in which the poor professional rater asked for the loan files so we can actually reviewed the credit quality of the sample of the loans so what happens he gets back a flame gram from his boss in all capitals triple exclamation point saying that it is totally outrageous to ask to see the loan files that people that merrill lynch's of the world the lehman brothers putting these c.d.o. is together don't even have the loan files never looked at the loan quality finally going to compare the looting going on in the u.k. with the looting by the bankers yes when your most elite most powerful members of society. upped strategy of what the famous french econom

well it's that standard and poor's took the u.s. from straight aaa student to one notch below for the first time ever bad marks were handed down for the nation's debt and politicians inability to agree on reigning it in a tea party downgrade a lot of it has to do with the failure of the present united states i think this is a tea party problem the greater in chief says the u.s. is becoming a bit more unpredictable in terms of the. proposed to. go a stoic response from the downgrade or that helped ratchet up that the yeah tricks of the debt ceiling debate with the help of the other ratings agencies of course stealing the show from bickering politicians with their eyes on the debt deal they may be missing really a larger concern because there is growing evidence today that the u.s. credit score is going to get hit now that the u.s. has gotten hit just how much does s. and p's mark actually count well not much according to some like investor jim rogers but it's not because the country isn't broke america is going down the tubes where th

growth perspective only austerity and there is no up to this crisis well the ratings agency standard and poor's is facing increasing scrutiny in the u.s. the justice department is looking into allegations that dozens of mortgage bulletins were improperly rated in the lead up to the crisis of two thousand and eight s. and p. has been questioned off the stripping the u.s. of its treasured aaa credit score just two weeks ago lorna's to reports now and growing doubts over just how credible the credit rating agencies can be. breaking news the united states has just lost its top notch triple a credit rating from it was the downgrade heard around the world in a strong reaction to the rating downgrade told us well it's dead standard and poor's took the u.s. from straight aaa student to one not below for the first time ever bad marks were handed down for the nation's debt and politicians inability to agree on reining it in a tea party downgrade in a lot of it has to do with the failure of the president of the states i think this is a tea party problem the greater in chief says the u.s. is becoming a bit

dollar system dominates international financial relations that moody's standard and poor's do the rating on sovereign debt for european union countries and that there is no independent european credit rating agency and there isn't is no. growth perspective and only austerity there is no out of this crisis the ratings agency standard and poor's is facing increasing scrutiny in the u.s. the justice department is looking into allegations dozens of mortgage terms were improperly rated in the lead up to the crisis of two thousand and eight s. and p. is being questioned off the strip in the u.s. and its traded aaa credit score two weeks ago all these lower list now reports on growing doubts over just how credible the credit rating agencies can be. breaking news the united states has just lost its top notch triple a credit rating from it was the downgrade heard around the world in a strong reaction to the rating downgrades on a hoss of us well it's that standard and poor's took the u.s. from straight aaa student to one notch below for the first time ever that marks were handed down for the nati

plummeted between five and seven percent on monday now all of this coming just hours after standard and poor's. downgraded the u.s. credit kicking america out of the triple a club this is already creating a climate of uncertainty or increasing this climate of uncertainty and lack of confidence among investors when they look to the stability of the u.s. economy the u.s. president barack obama of course try to inject some optimism into the public and into the markets on monday saying that america has been and always will be our aaa economy he says that washington's problem is not a lack of policy or plans but a lot of lack of political will and he says many lawmakers have been insistent on drawing lines in the sand and now it is urgent for all parties to come together to come up with a long term approach on how to reduce the deficit in the u.s. the u.s. debt of fourteen point three trillion dollars and growing and at this point many investors as we saw on monday are selling now and asking questions later clearly the markets have not been reacting favor favorably to the fact that standard and poo

economy was still solid despite standard and poor's downgrade ing of american credit but it looks like it is the sure and says have so far failed to come investors are going to court i is across the latest in new york. market reaction to the historic downgrade of america's credit are assured in the worst day on wall street since the two thousand and eight financial crisis all three major u.s. stock indexes plummeted between five and seven percent on monday now all of this coming just after standard and poor's downgrade the u.s. credit kicking america out of the triple a club this is already creating a climate of uncertainty or increasing this climate of uncertainty and lack of confidence among investors when they look to the stability of the u.s. economy u.s. president barack obama of course try to inject some optimism into the public and into the markets on monday saying that america has been and always will be our aaa economy he says that washington's problem is not a lack of policy or plans but a lot of lack of political will and he says many lawmakers have been insistent on drawing

and see but clearly the markets have not been reacting in favor favorably to the fact that standard and poor's did downgrade america's credit for the first time ever in history. transfer the cost of general says blaming standard and poor's is simply a smokescreen that distracts from the enormous economic mess the u.s. has created. collapse it's coming are you ready we saw this coming in saying it's the areas where they began the top bailouts on the bush we said it wasn't a recovery it was a cover up that the greatest depression was coming and here it is all this talk is nothing more than the equivalent of a and archduke ferdinand moment an economic equivalent for example they say world war one began when the archduke was assassinated sarajevo and now they're going to say the great depression began when the s. and p. downgraded us dead it has nothing to do with it when it collapsed in two thousand and eight the think people are still feeling prosperity for the real estate bubble hadn't really burst yet the credit crisis was just in the making it could have been worse than it's going to be now b