Tuesday, October 01, 2013

On the first day of the shutdown the markets gave to me....1 screen full of green

Futures seem to be reacting positively to...... oh, who knows.  The markets are up because the markets really wanted to be up yesterday.  Every time there was a hint of a deal out of DC the markets would turn sharply higher.  Now, today in the absence of a deal to keep the government open the markets are trading higher.

I'll stick with the consensus here that we'll have a shutdown of 2-4 days with little impact on markets or the economy.  However, if the polling starts to give some House Republicans a reason to dig in their heels we could see a longer shutdown (1 week +).

I also believe that the public's unhappiness with Congress will lead to swift hike of the debt ceiling prior to the 10/16 deadline.  However, I've been wrong before and I'll probably be wrong again :)


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