Today – Thursday October 3rd, 2013
- U.S. stocks declined today as government shutdown starts to effect companies because now companies have to let go of their workers, leading to a decline in the service industry, as 800,000 workers have been furloughed.
- If this shutdown continues then economic consequences of default be profound, those consequences, including high interest rates, reduced investment, higher debt payments, and slow economic growth, could last for more than a generation.
- The U.S. government will default if they do not increase the debt ceiling by October 17th 2013, so now the government is battling two main issues, the shutdown and debt ceiling issue.
Categories: Capital Markets