The Clinton Herald, Clinton, Iowa

October 3, 2013

Stocks fall as fears of protracted shutdown grow

the associated press
The Clinton Herald

---- — NEW YORK — Wall Street to Washington: end the shutdown and move on.

The U.S. stock market ended lower Wednesday as traders, Europe’s central banker and Wall Street CEOs urged Congress to stop the two-day government shutdown that has closed national parks, put hundreds of thousands of federal employees on furlough and forced President Barack Obama to cancel an overseas trip.

Wall Street made it clear on that the longer the budget fight drags on, the more its bankers worry about significant damage to the economy and the possibility that Congress won’t allow the government to borrow more. The financial market sees that as a disastrous move that could send the U.S. into recession.

“I’m not going out there and beating my chest and saying the world is coming to an end here,” said Brad McMillan, the Chief Investment Officer at Commonwealth Financial, an investment adviser. “But we face the possibility for significantly greater disruptions than the market is currently pricing in.”

Republicans in the House of Representatives are insisting that Democrats negotiate over a new health care law as part of the budget talks. Senate Democrats, led by Majority Leader Harry Reid of Nevada, insist that Republicans pass a straightforward temporary funding bill with no strings attached

On Wednesday, the major indexes opened sharply lower, with U.S. lawmakers appearing unwilling to yield in their entrenched positions.