Our government now faces in shutdown in less than 24 hours. While its more likely than not that a shutdown will be diverted once House Republicans appease their constituents that they've done everything in their power to send a message, the stakes are becoming increasingly high. What likely started as a bluff has seemed to take off down a steep and slippery slope. Harry Reid said this morning,"I'm not nearly as optimistic as I was eleven hours ago." Let's review a few things what will happen in the case of a government shutdown...
1. National Parks will be closed. There goes summer driving season, gasoline demand, and the ability of an ailing populace to vacation close to home in relatively inexpensive fashion. For us climbers, hikers, etc this actually is more brutal than you'd think!...Also, many national park jobs and concessionare jobs in national parks will be lost/postponed. These poor souls will be among the nearly 800,000 Americans whose jobs will be lost so that House Republicans can look good for the next election.
2. Pay to U.S. troops will be delayed.
3. Tax audits will be suspended.
4. *** FHA would stop guaranteeing loans *** There goes what remains of the housing market!
5. *** Loans to small business would be suspended ***
Meanwhile, Japan's nuclear crisis continues to worsen by the day, Portugal's Prime Minster yesterday announced that the nation will need to seek a bailout, the ECB hiked rates this morning, China inflation may hit 6%...so no end to tightening anytime soon in the People's Republic (4 rate hikes since last October already). A former IMF director this morning said that Ireland will need another bailout, and the Middle East continues to boil.
Message from the Fed, our media, and our politicians...buy stocks...everything will be fine.
Oil is over $109 this morning, and yet with all this going on, the VIX stands at sub 17 and the Dow remains over 12,400.
You may draw your own conclusions.
No comments:
Post a Comment