Monday was another brutal day on Wall Street. With the biggest one day points drop since December 2008, the Dow lost 5 and a half percent, closing down 634 points.
The drop was largely in response to Standard & Poor's downgrading of the United States' debt last week.
President Barack Obama spoke Monday afternoon trying to reassure the markets, saying the U.S. has always been and always will be a AAA country.
"What sets us apart is that we've always not just had the capacity, but the will to act, the determination to shape our future, the willingness in our democracy to work out our differences in a sensible way," he said.
Shortly after President Obama spoke, the Dow Jones plunged another 200 points.
In addition, the debt of mortgage finance giants Fannie Mae and Freddie Mac was downgraded Monday by Standard and Poor's. Right now, it is unclear what effect this will have on Fannie and Freddie's borrowing costs.
Many are wondering, how the moves in Washington and the drops on Wall Street would affect tourism in Myrtle Beach.
Dr. Taylor Damonte with Coastal Carolina University's Clay Brittain Jr. Center for Resort Tourism says the national scene plays a large role into consumer confidence, which is a key factor on tourism and tourism spending in Myrtle Beach.
Some daily indices, like the The Rasmussen Consumer Index, which measures the economic confidence of consumers on a daily basis, fell a point Monday as stocks plunged.
Many indices are published on a weekly basis, so the latest numbers out reflect confidence the last week of July.
Bloomberg has a its "Consumer Comfort" index it issues every week. The latest index was at minus 47.6 for the last week of July, with many consumers citing worries then about the approaching debt ceiling deadline of August 2.
"We're not going to see the 2008, 2009 type declines in either occupancy rates or prices," Damonte added.
He says that as long as Myrtle Beach maintains its status as a drive-to destination, and remains an inexpensive family destination compared to cities like Orlando or New York, the effects should not be too large.
Damonte will make a presentation to the Myrtle Beach City Council Tuesday afternoon about the spring and summer tourist season occupancy rates.
Overall, he told NewsChannel 15, occupancy rates are down, but hotels are able to charge more compared to last year.
Tuesday's city council meeting is Tuesday at 2 p.m. at the Ted C. Collins Law Enforcement Center located at 1101 N Oak St.
