What Will A Shutdown Look Like?
Unlike the unleashing of hell that so many politicians have bloviated on in the last few hours/days/weeks, Douglas Holtz-Eakin explains to Bloomberg TV's Trish Regan that in fact around 60% of the government will continue to tick along despite the "shutdown."
As Regan summarizes, "shutdown is an elaborate way of saying the government will be partially downsized temporarily..." to which Holtz-Eakin adds, "...and then re-upsized later." Sadly, while this will cost a modest amount, this will do nothing to stop the big mandatory spending programs and is simply bad governance.
This brief interview will allow some to sleep at night knowing that when you awake in the brave new world of a US government shutdown, the sun will still rise and the kids still need to go to school... perhaps that explains the rally in stocks?
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