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Look Out Below, Government Shutdown 2nd Week edition

Posted By Barry Ritholtz On October 7, 2013 @ 7:15 am In Markets,Politics,Really, really bad calls | Comments Disabled

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10.7.13 Futures [1]


US Futures are deep in the red, as we begin the third second week of the government shut down.

In theory, some 25% of the US economy may soon end up off line. We are not there yet, but that is the short term negative. The worst case scenario is a U.S. Default potentially a catastrophe dwarfing September October 2008 [2].

It will be interesting to see how this plays out, as we do not really know what the dissidents want. (I suspect they are not all that familiar with game theory). As of now, Boehner is saying the House will not have a chance to vote on a clean Debt Limit Bill [3].

Regardless, investors hope this slow motion train wreck gets averted prior to any actual collision.



Article printed from The Big Picture: http://www.ritholtz.com/blog

URL to article: http://www.ritholtz.com/blog/2013/10/look-out-below-government-shutdown-3rd-week-edition/

URLs in this post:

[1] Image: http://www.bloomberg.com/markets/stocks/futures/

[2] catastrophe dwarfing September October 2008: http://www.bloomberg.com/news/2013-10-07/a-u-s-default-seen-as-catastrophe-dwarfing-lehman-s-fall.html

[3] not have a chance to vote on a clean Debt Limit Bill: http://www.bloomberg.com/news/2013-10-06/boehner-says-house-doesn-t-have-votes-to-raise-debt-limit.html

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