October 3, 2013
The government shutdown persists and the impact is daunting. The side effects will create a rash that topical treatments will not cure. The fight that “Obama’s defends health care programme – amid US government shutdown” and the counter view that “Analysis: U.S. government shutdown fight could morph into debt limit superstorm” is what this writer predicted.
The government closing is bigger issue for the U.S. market. The fight is bigger than feuding political parties but the diminishing of the U.S. economy and supply chain. The underlying goal to stop the run on the debt sealing is not reduced buy triggering fear to the market. “The government’s $16.7 trillion borrowing cap must be raised by October 17,” reports Reuters.
Day three of 800,000 U.S. citizens are out of work. The economic ripple continues.
Euro News reports on U.S. Government shutdown identifying the President “Barack Obama has blamed Republicans on “an ideological crusade” for the shutdown of the US government. He said they had forced an unnecessary budget crisis purely because they want to dismantle his health care programme.”
Reuters reported, “More significantly, the result could be a dangerous and unpredictable fiscal superstorm that may be harder to resolve than the shutdown alone or the 2011 debt limit struggle that sent financial markets plummeting and brought the United States to the brink of default. The central problem is that congressional Republicans view the debt ceiling as their best chance to negotiate concessions from President Barack Obama, while at the same time, Obama says he will not negotiate around the debt ceiling, as he did in 2011.”
The stalemate persists as the dismantling of the social infrastructure is being shred as pulling on one string from a garment to find out that this lone string is weakening the overall fabric. The focus toward sustainability bypasses the lone line argument and looks to the greater focus.
Each day leads to another question of continuity while continuing ambiguity.
Stock Market close, October 2:
“Due to the government shutdown, the construction spending report which was scheduled to be released yesterday was cancelled. The nonfarm payroll report will also not be released on Friday. All ten sectors of the S&P 500 industry groups finished in the green, led by the technology and financial sectors.”
No reports and business analyses will leave gaps in future projections on locking in on leases and capital.
“The Dow Jones Industrial Average (DJI) gained 0.4% to close the day at 15191.70 The S&P 500 added 0.8% to finish yesterday’s trading session at 1695.00. The tech-laden Nasdaq Composite Index increased 1.2% to end at 3817.98. The fear-gauge CBOE Volatility Index (VIX) declined 6.4% to settle at 15.54. Consolidated volumes on the New York Stock Exchange, American Stock Exchange and Nasdaq were roughly 6.0 billion shares, lower than 2013’s average of 6.3 billion shares. Advancing stocks outnumbered the decliners. For 69% shares that advanced, only 27% declined.,” reported NASDAQ.