Dangers of the Shutdown and the Stocks.

Currently all we have is the hope that the shutdown will not run it's way into a 4th and 5th week. This shutdown has not only put many government workers at home, but it continually threatens the first days of the new quarter in the stock markets. There is a prayer that the economic unraveling will mimic the minimal effects of the last shutdowns in 1995-1996, but for many reasons we are pressed into believing otherwise. For starters, In 1995 gave a period of healing time as the shutdown didn't all happen in one sitting. This gave some time for the economic system to briefly bounce back. In our current condition we have no idea if we can be lucky enough to have the same. What has the potential to cause the most damage is the timing of this shutdown. It has happened on the first day of the quarter for the markets, which means that the shutdowns effects will be felt all the way to the end of the quarter.

As the shutdown drags on, it only gets worse. The greatest of the issues is that the fact our current economy is like a delicate flower. It was just beginning to bloom and on the first step to recovery, so the stress that this government standstill is forcing is extremely negative. Now what will occur is more hesitation in companies investing. It has just become a highly uncertain and ugly situation in the U.S. and none of us can clearly predict the future of what might happen. We can hope and record, it becomes the chore of terror. I just hope that the shutdown will end soon.

Source:
http://money.cnn.com/2013/09/23/news/economy/shutdown-economy/index.html