I have been pretty much ignoring the shenanighans surrounding a potential gov shutdown. I am sure a 40% reduction in total government activity would have a very healthy effect on the US, on a long term basis. However, a 90% shutdown in the near term won't have many good effects, just providing an excuse for why everything is delayed when they get back to work.
From CTC email--RE the potential government shutdown
In our agency, we are preparing to let markets and market participants know what we will NOT be able to do during a lapse. This is dangerous territory. We are just coming out of the worst economic calamity since the Great Depression, and certain members of Congress are playing a game of chicken—arguing over a miniscule percentage of the total budget—putting that recovery at risk once again. Our agency will not be able to staff key market surveillance and oversight functions during this period—only the most minimal services necessary to “protect property” and prevent market dislocations will be undertaken, and even then only in the event of emergency situations. We will go from several hundred people overseeing the markets to less than a handful.
Here is the full link if you are interested
http://www.cftc.gov/pressroom/speechestestimony/chiltonstatement040811.html
An old video from Faber
And this new Faber, courtesy of Zerohedge today--Faber on CNBC
http://video.cnbc.com/gallery/?video=3000015563
Mikhail Gorbachev
ReplyDeleteThe nuclear meltdown at Chernobyl 20 years ago this month, even more than my launch of perestroika, was perhaps the real cause of the collapse of the Soviet Union five years later. Indeed, the Chernobyl catastrophe was an historic turning point: there was the era before the disaster, and there is the very different era that has followed. ...
http://www.greenfacts.org/en/chernobyl/l-3/5-social-economic-impacts. htm#1p0
in 5 years JAPAN economy probably collapses, based on this outcome. there's a lot of unsustainable costs associated with a meltdown.
ReplyDeleteMikhail Gorbachev
ReplyDeleteThe nuclear meltdown at Chernobyl 20 years ago this month, even more than my launch of perestroika, was perhaps the real cause of the collapse of the Soviet Union five years later. Indeed, the Chernobyl catastrophe was an historic turning point: there was the era before the disaster, and there is the very different era that has followed. ...
http://www.greenfacts.org/en/chernobyl/l-3/5-social-economic-impacts.htm#1p0