Tuesday, February 15, 2011
Chances of a government shutdown rising
I was talking to Democratic strategist Bob Beckel at Fox yesterday on the subject of the president's budget and likelihood of a government shutdown. Until recently Beckel had been pretty sanguine about the latter, feeling that is was all bluster by the Republicans and nothing more. Yesterday, however, he indicated to me that it now looks pretty certain--CERTAIN--that the Republicans would force a shutdown.
I do not know what directional impact this will have on the markets, but I do know this: a shutdown and the discourse leading up to such an eventuality will create a lot of volatility.