Top Republican Warns: “Government Shut Down Is A Real Possibility, And Wall Street Is Unprepared”

Tuesday, March 28, 2017
By Paul Martin

by Tyler Durden
Mar 28, 2017

In all the spirited rhetoric over the Republicans’ failure to pass Obamacare repeal and confusion over what lies ahead, many pundits and market watchers seem to have forgotten that a far more imminent threat, one due exactly one month from today, is that the US government may shut down. As Axios pointed noted, citing a top Republican, after the GOP failure on healthcare, a government shutdown which looms when the continuing resolution runs out April 28 and coincides with Day 100 of the Trump presidency, is “more likely than not… Wall Street is not expecting a shutdown and the markets are unprepared.”

Axios further notes that the message CEOs took from Friday’s fiasco, according to an executive at a money-center bank, was “Holy crap! We may be facing the same crap on a shutdown threat, and on the debt ceiling. Holy crap! We may not get tax reform, or a repatriation bill, or infrastructure spend, or substantial changes to regulations.”

However, while we agree with the quoted republican that by and large markets are unprepared, they are starting to realize that a government shut down is becoming an all too real possibility, as the following just released note from BMO’s strategists Ian Lyngen and Aaron Kohli.

The RBC duo note that they have been fielding questions about ‘what’s next’ for the administration in terms of legislative proposals – tax reforms? An infrastructure program to ‘Repave America’?

The Rest…HERE

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