Reaction to credit downgrade may be short-lived

Monday's steep losses on Wall Street following the Standard & Poor's decision to downgrade the national credit rating were the worst since December 2008, fueling

EDISON - Monday's steep losses on Wall Street following the Standard & Poor's decision to downgrade the national credit rating were the worst since December 2008, fueling concern that the U.S. economy could slip into another recession.

News 12 New Jersey spoke to Walter Nacnodovitz as the worry spread from Wall Street to Main Street. Nacnodovitz, who owns a construction company in Bloomfield, said he doesn't know what to do and like a lot of people, is just waiting to see what happens.

Professor Martin Edwards, from Seton Hall University, says Wall Street's response is a huge overreaction to the downgrade. He says he expects the downturn to be short-lived.

President Barack Obama says the country needs to tackle its deficits over the long term and not just through spending cuts to programs like Medicare. He says there also has to be tax reform so that those who can afford it, pay their fair share.

advertisement | advertise on News 12

Trending Video

Police in Asbury Park calling for cease fire 1 Police in Asbury Park call for cease-fire after shootings
Fire breaks out at Jersey City home 2 Fire breaks out at Jersey City home
Jersey Weekend Buzz 3 Jersey Weekend Buzz
VIDEO: Man reunited with missing wedding ring 4 VIDEO: Man reunited with missing wedding ring
Monmouth County officials continue to search for missing 5 Officials continue to search for missing 19-year-old

advertisement | advertise on News 12

Features

It's good to know you have Walt Kane Kane in Your Corner

It's good to know you have Walt Kane in your corner.

News 12 takes a look at the hottest Tech Check

Eric Landskroner has a look at the latest gadgets and biggest stories in tech.

News 12 On the Scene

Check out these exclusive videos from New Jersey celebs!

Sorry to interrupt...

Your first 5 are free

Access to News12 is free for Optimum, Comcast®, Time Warner® and Service Electric℠ video customers.

Please enjoy 5 complimentary views to articles, photos, and videos during the next 30 days.

LOGIN SUBSCRIBE