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IPFS News Link • Government Debt & Financing

Shutdown Q & A: Unwarranted Debt Ceiling Drama, Republican Hypocrisy

• https://mishtalk.com, Mish

"Economic shock from U.S. being unable to pay its bills is not something we need right now."

Further adding to the unwarranted drama, New York Times writer Gretchen Morgenson says Shut Down the Government, and This Time, Investors Will Care.

"If we have to close down our government, we're building that wall."

So proclaimed President Trump at a rally in Arizona on Tuesday, raising the specter of a federal government shutdown if Congress fails to provide the money to put up a wall between Mexico and the United States.

In recent years, government shutdowns have become so common that markets have either embraced them or shrugged them off. But as investors absorb the possibility of a closure this fall, market tremors are likely to intensify, experts say. The past will not necessarily be prologue this time around.

That's the view of Isaac Boltansky, director of policy research at Compass Point Research & Trading in Washington.

Early on in shutdown history, investors reacted very negatively. Closures in 1976 and 1977 coincided with 3 percent declines in the S. & P. 500.


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