Futures Shrug Off the Government Shutdown

by Marilou Long on October 1, 2013

in deficit spending,Fiscal Policy,politics

Futures are flat to slightly positive before the open.  This is the , and 800,000 non-essential workers will be furloughed.  The more important deadline is going to be the clash over raising the debt ceiling in two weeks.  The last time Congress failed to raise the debt ceiling in August 2011, S&P cut the rating of the United States and the market fell 19% before resuming its upward move.  It is important to note though that Europe was dealing with its financial crisis at this same time.  If this shutdown is fairly short, the impact on Q4 GDP will not be large.

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