I guess the Yanks are getting what many of us have often asked for — a shutdown of government — but, when you see it in reality, you just can’t believe it. The big news out of the States was that 800,000 public servants were ‘furloughed’ — that’s a very American use of a word we all got to know from war TV shows, such as McHale’s Navy. But the shutdown news of today was that there was no Jobs Report, because government workers are temporarily out of a job! God bless America. I would have suggested “only in America” but I suspect that countries such as Italy and Greece could come up with these surprising twists on what we expect from governments and their departments.
Two negatives make a positive
Despite this unimaginable dysfunction of a key government service, that is, the delivery of an employment report that contains a vital market-moving statistic, and despite the hovering black cloud of the debt-ceiling deadline of October 17, Wall Street went up!
In the first instance, it was a case of “no news is good news” but I can’t confidently explain how the debt ceiling could be ignored. It can only mean that key market players believe Congress will arrive at a solution. If they don’t and markets dive, which will happen without a solution, then the global economy, including us here, will be saying God curse America!