SAN DIEGO (CNS) - A University of San Diego business professor said Monday that the stock market dive is a result of the failure of the nation's political leaders to act cohesively when solving the debt ceiling issue in recent weeks.
Alan Gin, known for his monthly San Diego Index of Leading Economic Indicators, told City News Service that today's drop of nearly 635 points by the Dow Jones Industrials was prompted by Friday night's lowering of the U.S. credit rating by Standard & Poor's, which cited concern over the "political discourse" and "intransigence" in Washington, D.C.
S&P lowered the long-term sovereign rating on U.S. debt from AAA to a still-strong AA+, but it had a huge impact on investors.
The firm said the way the debt ceiling negotiations went led to doubts that future progress could be made in corralling public spending or raising revenues.
Gin said "ideological rigidity" in the federal government made him "pessimistic," as well.
"The ideal solution is if politicians take this as a wake-up call and moderate some of their positions," Gin said. "The market is really concerned about the economy and the debt situation."
The giant drop in the stock market follows a 513-point fall last Thursday. The market is 2,000 points below its high point of 12,810 on April 29. The value of another major index, the S&P 500, has decreased 18 percent from its 52-week high.
Kelly Cunningham, of the National University System Institute for Policy Research, said investors were also reacting to poor economic news, including an employment report Friday that he called "pathetic." He said the slight increase in the number of jobs was "spun" because far more positions need to be created to make a dent in unemployment.
Cunningham, interviewed Friday by City News Service, said odds of the U.S. economy falling back into a recession are "very high," and he questioned if the last one ever really ended.
Spending by government, not business, raised the Gross Domestic Product, creating "a phony recovery," he said.
After two mistrials, a judge Friday dismissed felony DUI and hit-and-run charges against an oft-deported Mexican citizen accused of causing a crash in San Ysidro that seriously injured a 6-year-old boy returning home after a day at Disneyland with his family.
Students and community members in San Diego County plan to march for gun control this weekend as part of a nationwide "March for Our Lives."
A stabbing outside a Costco store in Carlsbad Friday left one person seriously injured and an acquaintance of the victim's in custody on suspicion of attempted murder.
Congress gave President Donald Trump the $1.6 billion he wanted this year for his proposed "big, beautiful" border wall with Mexico but the headline number masks what he didn't get on one of his signature campaign promises.
Annual data from San Diego county medical services show an alarming number of local underage drinking deaths.
A man accused of killing his girlfriend -- a mother of two -- in the apartment they shared in the Mountain View neighborhood of San Diego must stand trial on murder and misdemeanor child endangerment charges, a judge ruled Friday.
The San Diego County unemployment rate dropped by a tenth of a percent to 3.5 percent in February amid "better-than-average" growth, according to data released Friday by the state Employment Development Department.
School shootings, for good reason, make news. Most make national news. Some even make international news.
Sheriff's detectives were conducting a follow-up investigation Friday after determining that a pair of bomb threats made against two North County high schools late Thursday night was likely part of a "swatting" hoax, authorities said.