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Stocks continue to plunge as Obama addresses credit rating

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amny Photo Credit: President Barack Obama speaks from the White House/Getty

President Barack Obama blamed a downgrade in the United States' credit rating on political gridlock in Washington and said he would offer some recommendations on how to reduce federal deficits, he said Monday as Dow continued to nose-dive, dipping more than 450 points by the afternoon, marking the first time it has been below 11,000 since November.

Obama said in a White House appearance that he hopes the Standard and Poor's downgrade of U.S. debt to AA-plus from AAA will give lawmakers a new sense of urgency to tackle deficit spending and said he did not believe the reductions could be carried out with spending cuts alone.

A congressional committee, to be formed under the legislation passed last week that averted a government default, is to report its recommendations in late November on how to cut $1.5 trillion in spending over a decade.

Obama said he would offer his own recommendations for fixing the problem and cited again the need to raise taxes on wealthier Americans and make modest adjustments to popular but expensive entitlement programs.

The president added that the loss of 30 U.S. troops in Saturday's helicopter crash in Afghanistan will not deter the nation from its mission in Afghanistan.

"I know that our troops will continue the hard work of transitioning to a stronger Afghan government and ensuring that Afghanistan is not a safe haven for terrorists," Obama said. "We will press on and we will succeed."

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