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Expect Volatility - More Government Shutdown Idiocy

More brinkmanship from the Party of No We Can’t:
The government hostage situation will probably be resolved as a majority still exists but until it is resolved I imagine there will be some market volatility.


  • pig-pizzles for brains. repugnant insurgency party.
  • Don't expecting anything less from that Party. Holding more cash just in case.
  • Already?
    I was expecting this for 2023 Q1-Q3 after the debt-ceiling was hit.
    May be the Congressional payroll should be the first to go when there are budget impasses.
  • +2 @ybb and take their benefits also.
  • I be cool with all 'dat.
  • In an unprecedented move, S&P downgraded long-term federal debt from AAA to AA+
    in 2011 when politicians were squabbling over the debt ceiling.

    It's statement said in part:
    "We lowered our long-term rating on the U.S. because we believe that the prolonged controversy over raising the statutory debt ceiling and the related fiscal policy debate indicate that further near-term progress containing the growth in public spending, especially on entitlements, or on reaching an agreement on raising revenues is less likely than we previously assumed and will remain a contentious and fitful process."

    Deja vu all over again?
  • Look at the other side, or what happened to McGraw Hill that owned S&P then? It self-destructed. It now exists as private McGraw Hill Education and public S&P Global/SPGI.

    FWIW, no other rating agency followed S&P.

    One consequence of this was that no other US financial has been rated better than AA+ on the logic that none could be sounder than the US Government. In fact, only JNJ and MSFT now are 2 AAA rated US companies.
  • edited December 2022
    For all practical purposes, there were no real consequences for federal debt as a result of the S&P downgrade.
    However, it was extremely foolish to engage in political gamesmanship and risk the U.S. debt rating.
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