Peter Dunn says he believes that while the debt ceiling debate and the Standard and Poor’s downgrade of the country‘s credit rating were the “final straws” for the plummet in the stock markets, they weren‘t the only causes.
“Many economists and many market watchers will tell you that the markets were in trouble prior to September 11 and things simply got worse after September 11. Our markets and our economy were in real trouble prior to the debt ceiling debate and prior to this S&P downgrade,” Dunn said.
Dunn says there will be a negative impact for a some, but not most or all.
“The people blowing the whistle and screaming the loudest about this are people that happen to have their financial house a mess, they’ve got tens of thousands of dollars of credit card debt, they‘re way too risky in their own stock portfolios, and they panic the most because I think they realize what‘s at stake,” he said.
The Dow, S&P 500 and Nasdaq exchanges all lost more than 5% of their value Monday.