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Monday 30 September 2013

Will US government shutdown?

Stocks are falling as US government shutdown at midnight tonight seems more likely
Republicans and Democrats are not compromising in their political battle even though they do not want it to happen
Both sides are trying to blame the other even before a shutdown happens instead of negotiating for a proper solution

Democrats: "Tomorrow, the Senate will do exactly what we said we would do and reject these measures"
"At that point, Republicans will be faced with the same choice they have always faced: put the Senate's clean funding bill on the floor and let it pass with bipartisan votes, or force a Republican government shutdown."

Republicans: "I personally believe that Senator Reid and the president, for political purposes, want to shut down the government"
Although they also said: “We will not shut the government down, if we have to negotiate a little longer, we will continue to negotiate.”

It seems that the only hope is that the Republicans will have no choice but to compromise & lose this political battle to avert a government shutdown because they show that they are willing to negotiate but the Democrats are not

Conclusion: US government shutdown will not happen if they focus on what's more important & do what's good for the country
Stocks should fluctuate today because they should continue dropping but it's already too low
If the shutdown is avoided at the last minute, stocks should rebound & it'll be a good time to buy
Trade less before that to protect your investment

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