In August 2011, Standard & Poor downgrade US government bond rating from triple A to AA+ because US economy data was shortly doing poorly aftermath of the QE2 period ended in the middle 2011, and most important the bargaining among politics help to put US to the edge.
Following by the downgrade, the first we can see the panic spread among stock market. Either Dows and NASDAQ plunged on the following Monday and the dipping trend is still maintaining now with some swings.
Though stock market has been decline about 15% from the start of the bear market, US economy does not really look that bad. Actually, from the recent data, we can see a light recovery or flat down on the household sale and manufacturing data, and even much better than expected retail data with a 7% increase in Thanksgiving.
Once again, it'a good example to show us STOCK MARKET NOT NECESSARILY related to the performance of the economy. More or less the panic or enthusiastic take a big role on the market value.
http://www.msnbc.msn.com/id/44040574/ns/business-stocks_and_economy/t/us-government-loses-triple-a-credit-rating/
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