U.S. Threatened by Third Possible Government Shutdown this Year:
Possible shutdown isn’t making headlines but real threat looms…
The U.S government is facing another possible shutdown this year if they can’t come to an agreement over funding and spending. The latest battle between Republicans and Democrats involves funding for emergencies and FEMA. This is the third time this year that the threat of a government shutdown has made headlines and the economy is even worse than several weeks ago before the U.S. was downgraded by the S&P 500 although very few economists believe the U.S. government will default on its debt. The new possible government shutdown may be wearing on sentiment and adds to business uncertainty-again.
President Obama released info about his economic plan last week and the focus of the plan revolved around tax increases named after Warren Buffet. The high rate of partisanship hasn’t helped the economy as stocks retreated last week to 3 year lows and volatility rose to early August levels. We are looking carefully at political economy issues and how they may effect trading as well as other investment decisions.