And as of Midnight, the US Federal Government has shutdown due to funding. Late last night, the Republican controlled Congress pushed a bill to the Democrat controlled Senate to keep things operating. It contained language to fund the government but was voted down by the Senate because of changes to Obamacare. Major portions of Obamacare (The Affordable Care Act), ironically, went live this morning.
Does the government shutdown effect investors? Not yet. I have read some projections indicating a potential 1-1.5% hit to our country’s GDP depending on the length of the shutdown. This is concerning because we don’t have that much growth to give. However, such numbers are very difficult to project and the true impact probably won’t be known until long after the event has ended.
The next round of quarterly earnings reports and conference calls is about to begin and I will be listening to to hear if any of my investments are adjusting their numbers in reaction to the shutdown. I don’t want to dismiss the fact that a large number of people are out of work this morning, but for many Americans, it’s business as usual today. In fact, the market doesn’t appear too concerned at this point.
The White House web site this morning: