Goldman Sachs Nails It On Why You Should Be Rooting For A Government Shutdown

[Yo_Mama_Been_Loggin]

Don't agree with these guys on much of anything but they have a point.

Goldman Sachs' Alec Phillips nails it in a new note to clients today. You should want to see a government shutdown in Washington:

It would be a mistake to interpret a shutdown as implying a greater risk of a debt limit crisis, in our view. It would not be surprising to see a more negative market reaction to a shutdown than would be warranted by the modest macroeconomic effect it would have. We suspect that many market participants would interpret a shutdown as implying a greater risk of problems in raising the debt limit. This is not unreasonable, but we would see it differently. If a shutdown is avoided, it is likely to be because congressional Republicans have opted to wait and push for policy concessions on the debt limit instead. By contrast, if a shutdown occurs, we would be surprised if congressional Republicans would want to risk another difficult situation only a couple of weeks later. The upshot is that while a shutdown would be unnecessarily disruptive, it might actually ease passage of a debt limit increase.

http://www.businessinsider.com/goldman-sachs-nails-it-on-why-you-should-want-to-see-a-government-shut-down-2013-9#ixzz2gIfrogaX

[Narraback]

1. FYI Mrs, Cruz works for Goldman, Sachs

http://en.wikipedia.org/wiki/Ted_Cruz

"Cruz's wife is currently head of the Southwest Region in the Investment Management Division of Goldman, Sachs & Co. and previously worked in the White House for Condoleezza Rice and in New York as an investment banker.[95]"

[Yo_Mama_Been_Loggin]

2. So you think Cruz is part of some conspiracy by Goldman Sachs?

[truebluegreen]

3. Actually I've been thinking that the slightly more sane part of the Republican party

(I know, I know) is hoping that the clearly insane portion will get it out of their systems with a shutdown.

Personally I think the best thing* in the long run is for the insane ones to pick up this shutdown and run with it, hang onto it until default looms, all the while being hammered by our side and by the money people on their side, until President Obama cuts the Gordian knot by citing the 14th. With luck, the puke party will irrevocably split down the middle and Americans from all walks will see them for the destructive, selfish and self-absorbed assholes they are.

A man can dream.



*Just want to acknowledge that this would be a horrible, devastating situation for many Americans and is certainly not to be welcomed. Otoh, these people are so crazy it might take something like this to make them go back to their caves, or under their rocks, or whatever benighted place they crawled out of.

[johnd83]

4. I agree

they are going to keep trying to do this until they get to. Might as well just get it out of their system. Once the markets start to plummet they will be under a huge amount of pressure to relent. It will suck for a lot of people in the short term though.

[dickthegrouch]

5. And the Kocks will lose far more than me

In the resulting stock market meltdown

[Oilwellian]

6. Not really

I'm sure they're shorting as we speak.