The deadlines for the budget and debt limit

Congress is working on two deadlines.

• Monday, Sept 30 at midnight – budget – If Congress can’t pass a budget by then the government will begin a limited shutdown.

These shutdowns have happened before and aren’t devastating but they have a real economic impact.

Republicans are trying to pass a budget that doesn’t have funding for Obamacare and Democrats are having none of it. Tough to say when this one will be settled but markets could really start to sour on Friday or Monday.

• Thursday, October 17 – debt ceiling – Today, Treasury Secretary Jack Lew said the US will exhaust borrowing capacity no later than that date.

This could be catastrophic. The government insists it can’t prioritize the tens-of-thousands of payments it makes daily. Missing a bond payment would literally be default and cause a devastating wave of downgrades.

So far, the White House and Senate are saying they will not negotiate with Republicans on the debt limit, gambling that the GOP doesn’t want to risk the wrath of the public if all hell breaks loose.