U.S. President Barack H. Obama on Monday addressed the American people, presenting the White House's view of the credit rating reduction of the U.S. by Standard and Poors last week. Obama said that the U.S. did not need a ratings agency to certify its creditworthiness, and that despite the downgrade, investors still believed in the U.S. Quoting billionaire investor Warren Buffet, Obama said that the U.S. deserved a “quadruple A rating, if the agencies gave that out.”
In trading Monday afternoon, U.S. stocks plunged sharply as investors weighed the impact of the downgrade. In mid-afternoon trading, the Dow Jones Industrial Average was down about 450 points, between 4% and 5% of its value.