The Market Reaction To The S&P Downgrade Is "A Cleansing, Cartharsis, And Purge"

Managing Director and Chief Investment Strategist of Morgan Stanley David Darst spoke with FOX Business Network's (FBN) Liz Claman about Standard & Poors' (S&P) decision to downgrade the United States debt and the impact it is having on the markets. Darst said the economy is “working through some rugged times” and “for us to get better, things have to get worse first.” Darst went on to say that the market is experiencing “a cleansing, catharsis, and a purge.” Excerpts from the interview are below, courtesy of Fox Business Network. On the market reaction to the S&P downgrade: “No question about it, Europe is one of the contributing factors to the selloff. It's not just a debt downgrade. Europe is one quarter of the global economy, one quarter is the United States. That is one half of the economy that is suffering along. People are like ‘are we going to be like Japan?' It is my belief we are not. We are working through some rugged times. For us to get better, things have to get worse first. This is that part. It is a cleansing, catharsis, and a purge.”