Christopher's Business Blog

In the United States the Republican and democratic parties were unable to stop the looming government shutdown. The initial partial shutdown sent the stocks soaring in the downward direction. The two parties have been unable to come to a resolution for raising the  borrowing limit of the United States. So what does that mean for investors? According to The Guardian stocks began to tumble before the shutdown was put in place. As signs of progress have emerged from congress stocks have continued to plummet by more than 5.4% in only in the last 5 trading days This also means that if the government can’t come to a deal soon then they could potentially miss a debt payment then the value of the U.S dollar would plummet. In addition, US interest rates would sky rocket as economic stability is no longer present. All economic recover could be halted and if an agreement is not reached within an extended time period  there could potentially be huge affects on not only U.S economies but also global markets. The government shutdown is also affecting the highly anticipated September job report.

Citation:

http://www.theguardian.com/business/2013/oct/03/stock-markets-tumble-government-shutdown