Monday Morning Cheat Sheet: 3 Stories Moving Markets
It’s Monday, October 14, and the United States is just three days from tripping over its statutory borrowing limit. Come Thursday, the U.S. Treasury will exhaust the extraordinary financing measures that it had employed back in May — when Uncle Sam last cracked his head against the debt ceiling — and will be left with approximately $30 billion plus incoming revenues to pay the nation’s bills. Even with parts of the government already offline — the partial shutdown is stumbling into its 14th day — the U.S. will only be able to meet about two-thirds of its financial obligations.
The situation can politely be called a budget impasse, but may be more accurately described as full-blown political trench warfare. What started as an attempt by ultra-conservative Republican members of the House of Representatives to use the budget as leverage to defund the Affordable Care Act has only over the past few days evolved into a real debate over fiscal issues.
Democrats and Republicans have both dug in so deep that public vitriol appears to have no effect (just wait until November 2014 votes), and now it appears as if the only thing left that can whip Congress into action is the proximity of the deadline.