Dow Jones Industrial Average Plummeted 600 Points

Dow Jones Industrial Average Plummeted 600 Points.On Monday, the Dow Jones Industrial Average plummeted over 500 points after the first downgrade by Standard & Poor's rating of the United States, and subsequently reduced the government-backed mortgage debt. The Dow Jones industrial average dropped 600 points sub-11, 000 at one point, when the S & P and Nasdaq fell 5.5 percent.

Obama said that the good news is that the debt is a solvable problem, which could address through spending cuts and tax reform. However, investors are not buying. Dow plunged 100 points and the second blocked about 500 points, while the president's speech. Gold rose $ 68 today, a record $ 1,720 an ounce.

Investor looking for a sign

Investors are looking for a sign that the sale of shares will slow down fast and furious. The possibilities of the signs, unfortunately dissipated when S & P said the lowering of mortgage agencies, which are now owned by the government after the financial crisis in 2007. The government took over the agency. Mortgage debt and downgrades of U.S. bond could lead to interest rates even higher, is another obstacle to economic progress slow. Government officials have tried to find problems in the evaluation of S & P stressed that the agency committed an error of 2 billion dollars in its calculations.

Dow Jones Industrial Average took a serious blow during the week. Dow dumped another 100 points and hovered around a loss of 500, after the president's speech. Investors looking for signs that draw hope, something that will show that the sell-off of the market downturn will be steep. An executive director of Standard & Poor George Stephanopoulos said on "Good Morning America" ​​today that he has never regretted the decision to downgrade the American coast.