US credit drop rattles Tel Aviv Stock Exchange

[The Straight Story]

US credit drop rattles Tel Aviv Stock Exchange


JERUSALEM, Aug. 7 (Xinhua) -- The Tel Aviv Stock Exchange (TASE) registered a sharp 6.5 percent fall on Sunday morning in the wake of Standard & Poor's (S&P) downgrading of United States credit on Friday from AAA to AA+.

The step was the first such downgrade in American history.

"The downgrade reflects our opinion that the fiscal consolidation plan that Congress and the Administration recently agreed to falls short of what, in our view, would be necessary to stabilize the government's medium-term debt dynamics," S&P said in a statement.

Trading in the TASE was stopped during the morning due to the instability in indices.

http://news.xinhuanet.com/english2010/business/2011-08/07/c_131034568.htm

[Turbineguy]

1. They needn't worry

The subsidies to Israel will continue long after the US economy has collapsed and millions of Americans are dead.

[originalpckelly]

2. It's not just that, but it's like the only index that's open at that time.

So this probably means when the Asian markets open they'll be crazy too, and the US ones as well.

[hlthe2b]

3. The automatic gravy train to Israel may be drying up...

I should think they would be worried. I doubt it will stop the saber rattling, however.