After Thursdays market ‘correction’ of 5%, I did not see a suitable explanation for why the market suddenly had its worst day since February 2009. Thats because the explanation probably didnt come out until Friday afternoon, when the US Debt credit rating drop was announced.
Its a reasonable theory that the news of the credit rating drop was decided Thursday and acted upon by Wall Street indiders prior to the announcement. Anybody have a better theory? It seems logical that the White House would have asked S&P to delay the public announcement until the Friday Night News dump – the time when Washington typically releases bad news hoping that it will be old news by the time everybody comes back from the weekend. To have no one even discussiong the tieing of Thursdays Market drop to this huge financial news makes no sense to me. Another reason to look for alternative investments to the Stock Market.