For the first time in 17 years the government has plunged into a partial shutdown. At least 800,000 federal workers are furloughed. Another 1 million are working without pay. And the cost to the government? At least $300 million a day in lost economic output, according to IHS.
"America should be furious about this," says The Daily Ticker's Henry Blodget. "I don't care which team you're rooting for, this is just an absurd situation."
Wall Street has largely shrugged off the DC infighting as the S&P 500 (GSPC) opened higher this morning. In the end, no investors were surprised about waking up to a shutdown.
"Wall Street looked at Washington and saw a group of fighting children, knew exactly what was gonna happen and this is all baked into the stock market," says Blodget.
But the worst is yet to come he insists. "Our government is actually considering defaulting. This is just preposterous...our government has been hijacked by a group of hostage takers," he argues.
Today in DC, the CEOs of the country's largest banks will meet with President Obama to talk about the shutdown, the debt ceiling and other economic issues. Goldman Sachs (GS) CEO Lloyd Blankfein and JPMorgan Chase (JPM) CEO Jamie Dimon will be there. And as Bloomberg Businessweek points out, Blankfein warned last week that the budget standoff was harming the U.S. economy and markets.
The upcoming fight about raising the debt ceiling is sure to wake Wall Street from its passive slumber.
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