U.S markets were active at the end of the week before the Columbus Day holiday as the United States Senate sought a deal among Republicans. Talks had begun during the week to discuss the looming default the government faces while on shut down. Investor backlash is likely to happen if legislators are unable to reach an agreement.
Asian markets are noticeably displaying the dollar decline against the yen and this is the result of the ongoing inconsistent negotiation talks. Harry Reid made note to the media that he had a “Substantive” discussion with Republican Mitch McConnell but talks were suspended pending more negotiations. It is noted that backroom talks are numerous in regards to mobilizing an appropriate voting bloc.
Discussions surprisingly broke down on Sunday afternoon with no agreement being reached among party members. Investors watching the Republican-Democrat showdown are increasingly agitated that a deal has not been hammered out among officials. The New York Exchange opened on Monday despite the Columbus holiday however the trader offices were closed during the break.
The markets will be an initial signal of status of the United States Senate negotiations deal. With the markets opening up in the early week, investors may display hesitations in market deals if no sign of progressive negotiations remain among party members. The White House had made contact with House minority leader Nancy Pelosi to reiterate that the Republicans need agree to end the shutdown and extend the debt ceiling.
David Plouffe, former Obama senior political adviser, made statements insinuating that the shutdown will likely go on for a while. He said there was likely a 50/50 chance for a deal among Republicans and Democrats. It’s well known that the White House in not entertaining concessions to the budget unless the shutdown is remedied.
“America is being weakened and we are sending a message to the world that the United States can’t govern,” said Leon Panetta, former defense secretary. He expressed concern that the government continues being shutdown with no progressive signs of resolution. He was worried about the readiness of the country in regards to possible outside threats.
The White House presence has been dismal in media as talks continue of negotiations between the Republican and Democrat Party. Seniors law makers recognized the stalled negotiations and have been scurrying feverishly to solve the problem. Senator Susan Collins, Republican, affirmed that productive conversations were occurring among congressional members.
Many senior party leaders think it is wrong for the president to play hard ball with the looming default issue. The majority of senior leaders believe the best chance for an agreement will come down in meetings between Reid and McConnell. An agreement between these two leaders represents the best chance for a sound resolution.
The markets will be decisive in signaling how a negotiation deal develops in the U. S. Senate as the threat of a default looms near. Plouffe believes what the markets say is a clear indication on rather or not negations are progressing as necessary. US markets decline as the default nears causing investors to panic in its midst.
By Thomas Barr