Economies are fragile. Perception is very important in their behavior. Lack of confidence in a bank or a currency can be fatal, regardless of the underlying circumstances.
That is why this is so unusual. Told in a CNBC interview that Wall Street is "pretty calm" about the government shutdown and political infighting, Obama said: "This time I think Wall Street should be concerned.”
This is unprecedented in memory: A U.S. president talking down the stock market.
No confidence. No encouragement. No optimism. No offer at compromise.
Unheard of.
Incidentally, here is graph, a composite of the last 17 government shutdowns, describing the S and P behavior over time:
That is why this is so unusual. Told in a CNBC interview that Wall Street is "pretty calm" about the government shutdown and political infighting, Obama said: "This time I think Wall Street should be concerned.”
This is unprecedented in memory: A U.S. president talking down the stock market.
No confidence. No encouragement. No optimism. No offer at compromise.
Unheard of.
Incidentally, here is graph, a composite of the last 17 government shutdowns, describing the S and P behavior over time:
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