The Dow Jones Industrial Average dropped as much as 515 points today, and has plummeted below 11,000 for the first time since November of 2010. Investors "poured money into Treasuries, gold, and the Swiss franc," while foreign markets in Europe, Australia and China "extended losses to more than 20 percent from recent peaks, the level some investors consider a bear market," Bloomberg reports. Prepare yourself to see a lot more "pop-up soup kitchens" on Kickstarter.
As the market suffered, President Obama indicated that the country's credit status "remains AAA" despite S&P's downgrade last Friday. "Our problems are eminently solvable and we know what we need to do to solve them," he said, and suggested that the new panel created to slash the deficit per last weeks debt-ceiling deal should implement "tax reform that will ask those who can afford it to pay their fair share and modest adjustments to health care programs like Medicare." Sure, Barry. But are you willing to fight for it? When the President said the issue is "not a lack of plans or policies that's the problem here, it's a lack of political will," we hope he's including himself.
The S&P's downgrade of the US's credit rating, along with persistently weak foreign markets and the perception that we're headed towards a "double dip recession" have combined to form a "perfect storm" against benchmark financials, like Bank of America. After cutting a very favorable settlement deal for all the toxic mortgages it peddled before the real estate bubble burst, BOA is now under threat of lawsuit by AIG, who is alleging that the bank lost $10 billion of their money in the dubious transactions. Not to mention New York Attorney General Eric Schneiderman sniffing around BOA's sweetheart settlement.
At times like this, it's best to dwell on what really counts in life. Oh look, Mila Kunis is on the cover of GQ!