Standard & Poor’s Ratings Service has downgraded its long-term outlook on the nation’s debt, signaling its doubts that Washington can stem its flood of red ink. The S&P outlook mirrors the feeling of many in the country that the White House and Congress will be unable to agree on a debt-reduction plan in the next two years. This morning the Dow Jones Industrial average plunged 200 points. Is this market dip a sign of things to come? What does this new rating foretell for the future? What about the reputation of the rating agency itself? Are these predictors to be trusted? What does any of this mean for your personal investments?
Dave Kansas, Chief Markets Commentator for the Wall Street Journal
Chris Thornberg, Principal, Beacon Economics