The current US federal government shutdown - which is more of a slowdown - has merely set the stage for an even more nerve-racking deadline on October 17 when the US will cross their debt ceiling. At most the government could get by for another couple of weeks with $30bn cash on hand, but without a deal the US will in effect be in default in a couple of weeks.
Last week was dominated by news from the US Federal Reserve and their surprise decision to hold fire on a reduction on the stimulus that is currently being injected into the US economy. This unexpected decision on 'tapering' sent most of the economics world scrabbling to reassess their projections of just when the economy will be strong enough for the Fed to change its course.
Few outside the US would have heard of Congressman Pete Stark, a Democrat who served in the House of Representatives for 40 years before losing to a r...
Another mass shooting, more panic on the streets of America. The images we witnessed are all too familiar. There were heroic first responders, crouching and crawling with their rifles. We saw unfurling police tape and flashing blue lights and terror stricken civilians fleeing the since. And now in the aftermath, the discussions into the gunman's motives are being exhaustively debated.
The sequester was a legislative tool designed to scare the Congress into doing its job. It clearly seems to have failed to produce this result. If it goes into effect, the sequester means across the board cuts in every agency of federal government with no ability to control what is cut and what is not.
Investors were clearly thinking along traditional lines last week and wanted Romney, but the Obama victory doesn't have to be such a bad result for them. Chances of reaching a deal to avoid the fiscal cliff have increased a little bit with the outcome of these elections. And the outlook for getting to a more comprehensive agreement on getting back on a healthy fiscal track have improved somewhat with a second-term president and less power for the Tea Party.