While few were expecting that the US government would pull a Belgium and collapse following an end of fiscal year lack of funding resolution, virtually everyone was secretly harboring just such a hope. Well, trust the government to once again kill all hopes that America has a chance to finally grow out of its depression. As the WaPo reports, with just 4 days to go until the end of the fiscal year end, and until some form of a continuing resolution has to be struck, we have once again averted Keynesian Armageddon (i.e., the inability to issue publicdebt to fund the digging of holes). "Senate leaders announced a bipartisan agreement Monday evening that would keep government agencies funded until Nov. 18, potentially ending a contentious dispute on how to pay for disaster funds. The Senate is expected to approve its version of the temporary spending bill Monday evening. The House is likely to approve a very brief extension of funding by a voice vote later this week and, when it returns to session next week, hold a vote on the stop-gap bill funding the government till Nov. 18." Expect the market response to be furious and hilarious as somehow news that America won't be lining up in front of the Southern District of New York (or, more properly, Beijing) for now, will be spun as massively bullish.
With 4 Days To Go, US Government Averts Another Near Keynesian Death Experience
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