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Government shutdown (disfunction) and the market.

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October 01, 2013 – Comments (8)

I looked up the last time that the US government failed and had a shutdown over the lack of a budget.  Back in the end of 1995 and early 1996, the Republicans caused a government shutdown over the budget.  Good ole' Newt.

My question was, how did the market react to that time period?  Honest, looking at the S&P index, there was no slowdown in the great market rise during that time.

Will the current shutdown be the same?  Are we on a great bull run like the mid-nineties, unable to stop for years?

I don't know.  I put in some sell orders for some stocks that have risen and I will probably take some profits.  I also put in some low-ball buy orders for other stocks.  Maybe there will be some volatility, maybe not.

 

8 Comments – Post Your Own

#1) On October 01, 2013 at 8:49 PM, awallejr (85.54) wrote:

It isn't the shut down that concerns anyone really, it is what will happen to the debt ceiling that will create volatility as the deadline approaches.  I so hope Obama uses the 14th Amendment section 4 if the House Republicans try to push us passed it.  NO party should ever mess around with that.

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#2) On October 02, 2013 at 9:19 AM, drgroup (69.48) wrote:

The republicans are trying only to postpone aca for a year. Not defund it. The fault lies with the pres and reid for being obstructionist and economic terrorist. Because Boehner and crew are trying to keep the gov open by authorizing individual items in the budget, is a sign of their not wanting to shut down anything. Lets see over the next few days how many items reid and nobama will agree with. They are just being contrary. The markets have been through this 16/17 times and are not really concerned...   

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#3) On October 02, 2013 at 9:36 AM, alexf (< 20) wrote:

Dear drgroup. Please get your news from other sources than Fox for comparison.

Trying to defund the undefundable is folly.  Trying to postpone a law that was voted by Congress, signed by the president and enacted, re-asserted as constitutional by the Supreme Court, and re-asserted by the electorate in the last election (a referendum on this issue in a way), is folly.

Doing nothing about the important issues, (paying the federal employees, raising the debt ceiling commensurate with the budget Congress has already approved, jobs laws, immigration reform, etc. etc. but instead going back to this non-issue (it *is* the law of the land after all) 42 times is folly!

Give it up and fight the good battles! You do not like something? There's always next November to cast yor vote.

You are calling the president an "economic terrorist". That is a very nasty indictment and totally unwarranted. I could argue that a group that conspires to shutdown the government is committing treason. That IMO is a more apt accusation.

Let's talk about the market, economics, finance. Let's leave bickering and partisanism out of here where it does not belong.

Have a good day, and remember the hundreds of thousands of federal employees that are not being payed right now, and the hundreds of congress-critters that are.

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#4) On October 02, 2013 at 4:52 PM, drgroup (69.48) wrote:

"Let's talk about the market, economics, finance"

If you can't relate what is happening with this event as not affecting the above statement, you should reconsider switching to a different venue.

Your tone and view point indicates you are a fed employee.What stepgrade are you as a fed employee? When you go back to work you'll receive all your lost pay, so enjoy your holiday. Over 17% of the real work force is unemployed and have no work to return to. They will also be forced to make a decision between buying healthcare or groceries for their families.

And by the way, being an economic terrorist is only one terrorist badge your furor wears. You might be aware of this if you didn't spend all your time spouting progressive hype....

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#5) On October 02, 2013 at 7:22 PM, awallejr (85.54) wrote:

Over 17% of the real work force is unemployed and have no work to return to. They will also be forced to make a decision between buying healthcare or groceries for their families.

Except they won't since they will most likely get a subsidy.

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#6) On October 03, 2013 at 8:21 AM, drgroup (69.48) wrote:

Except they won't since they will most likely get a subsidy.

I think they would most likely rather get a job. Time will bear out the truth on these subsidies. We are dealing with the gov here....

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#7) On October 03, 2013 at 8:22 AM, drgroup (69.48) wrote:

Except they won't since they will most likely get a subsidy.

I think they would most likely rather get a job. Time will bear out the truth on these subsidies. We are dealing with the gov here....

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#8) On October 03, 2013 at 9:17 AM, awallejr (85.54) wrote:

That wasn't the topic. I am sure they would too.  But your comment that they will be forced to choose between food or insurance is just wrong.  I am sure tho they appreciate your concern and perhaps you can petition the Republicans to stop trying to gut the Federal Food Stamp program.

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