Goldman Sachs says they expect any imminent shutdown to last only 2 to 3 weeks .
However, "more than one shutdown is possible":
- the two parties are far apart on spending proposals
- any agreement to reopen the government after the likely shutdown is likely to expire before year-end
- this potentially risks another funding lapse
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During the US session we got a warning from Moody's, the only major credit ratings agency that has a top credit rating for the US:
- Moody's warns that US government shutdown would be 'credit negative'
- "In particular, it would demonstrate the significant constraints that intensifying political polarization put on fiscal policymaking at a time of declining fiscal strength, driven by widening fiscal deficits and deteriorating debt affordability."
What a mess.
