Federal Government Shutdown 2011: Is A U.S. Government Shutdown April 8 Possible or Probable?
Could The Federal Government Shutdown 2011 Over The Budget Really Happen This Time?
Is a federal government shutdown imminent – again? This time it seems like Republicans and Democrats may not be bluffing. The U.S. federal government is set to close on Friday April 8, 2011 if a continuing resolution doesn’t occur within a few hours. The odds from analysts and websites we follow are now over 50/50 that the government will shutdown unless an agreement can be made quickly. The amount at question may seem little compared to the total in dispute but more attention has been paid to this possible extension than the last and the government shutdown was the 11th trending topic in Google at 9:00pm EST (April 5, 2011).
Since the first extension, the economy has improved so President Obama and the Democrats do have some statistics in their favor but the budget deficit may make the perceptions of both parties decrease slightly. A government shutdown would add uncertainty to an improving economy and it may negatively impact business confidence short term. The economy could still rebound marginally due to pent up demand and new hiring needs in the private sector, which has been expanding. The shutdown will have a negative impact on some sectors but the extended deficit (or perception of too much debt) has negative consequences on the overall economy. The government shutdown could be extended again for a few more days but this may not help to change the dynamic or could add more negative headline risk.
Sources : http://www.torycapital.com/2011/04/05/politics/federal-government-shutdown-april-8-prospects
