NPR Flunks Causal Relations 101 on S&P Downgrade and the U.S. Stock Market

NPR told listeners that Standard & Poors downgrading of U.S. government debt caused the stock market plunge last summer:

"A year has passed since the debt ceiling debacle in Washington, D.C. The showdown cost the U.S. its AAA credit rating and sent the stock market and President Obama's approval ratings plunging."

Is that so? Let's try a little logic 101 here. S&P downgraded U.S. government debt, meaning in principle that there was a greater risk that there would be a default on this debt. Le...