The shutdown of the US Government is all about politics, Obamacare and the debt ceiling – at least, if you ask the politicians and the mainstream media.
But the shutdown is also about people, their wages, their mortgage payments and their confidence.
For an economy on the verge of sustainable growth, but not there yet, the shutdown could not have come at a worst time.
Our cousins at Business Insider in the US published this and the collapse in consumer confidence is in plain sight.
The worst thing about the collapse in confidence is that like most developed economies, for all the focus on manufacturing, they are about services with upwards of 60-70% across many economies.
Services often flow with confidence.
So last night’s disappointing result in the US for the ISM non-manufacturing (services) PMI is a warning to Washington and Capitol Hill to get the US Government going again.
No wonder US equity markets fell again overnight. The ASX is under pressure too and at risk of a big break lower.
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