Yesterday was one of the worst days for global stock markets since the 2008 collapse of Lehman Brothers. A sell-off in European markets continues today.
Sharp stock market drops of late are reminiscent of the 2008 crisis — and that's put investors on edge. But the roots of our current economic turmoil are much different than the causes of the last recession.
The downgrade of the U.S. credit rating will also likely force ratings cuts on bonds issued by cities and states. That could raise municipality borrowing costs.
New York bureau chief Heidi Moore discusses what S&P's downgrade was really about and how we are going to get substantive economic help out of what's going on
How Europe is dealing with the U.S. downgrade news, in light of its own debt problems, and the latest on China's reactions as the largest foreign holder of U.S. debt
Now that partisan politics has rendered the government unable to function, only one player in Washington has the power to affect the economy: the Federal Reserve
The economy isn't doing well, but S&P said Friday it was downgrading U.S. debt because of politics, that there's such a gap between the parties, it throws into serious doubt the government's ability to govern responsibly. But where's the gap?
