Tuesday 1 October 2013

2013-33 Shutdown and Canada

Here is a summary form the Globe and Mail and from the National Post

The exact rules of the shutdown are not set in stone. So it is not clear whether there will be any delays on the border.

The markets have already incorporated the shutdown into share prices, so do not expect much reaction. But, as another example of political issues in the US, in the medium run share prices are likely to be lower than they would have been otherwise.

There will likely be little effect on the economy. If the shutdown drags on for more than a couple of weeks, growth in the US will slow; with minor negative effects on our economy.

The big one will come around October 17, when the debt limit will become binding and the US government will not be legally allowed to borrow new money. Perhaps the politicians will come to an agreement by then.

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