(New York, NY) — Some financial analysts are blaming Washington for Thursday’s big sell-off on Wall Street. Crude oil prices plunged to a year low Thursday.

 

Former Wyoming senator Alan Simpson says foreign countries didn’t like how Congress solved the U.S. debt crisis. Simpson says the U.S. debt ceiling solution literally scared foreign markets and helped investors around the world to sell their portfolios.

He says the world is different since he was co-charman of the Debt Commission with countries taking on more debt, deficit and interest. Simpson believes that process is unsustainable. The Dow plummeted 513 points Thursday to 11-384. The S&P 500 fell 60 points to 12-hundred. The Nasdaq dropped 137 points to 25-56.

Lightyear Capital Chairman Don Marron remarked that predictions of dire consequences over the debt ceiling issue prompted investors and business owners to delay making decisions that could improve the economy. He added that the gridlock in Congress over the debt bill shook foreign confidence in the strength of the U.S. economy.