Wednesday, April 6, 2011

Calculated Risk say I should be Scaredy Pooh

Because central government might shut down. I am a little lost in trying to find out what exactly is going to happen to me in my basement without central government services.  There are probably a hundred million of us souls that really aren't scared. Anybody have a clue?  Maybe he is worried that central government will quite subsidizing houses.

Stephen Gandel, from Time says:
First of all, stocks have risen during past government shutdowns. The December 1995-January 1996 shutdown, for instance, did nothing to stop the then gaining momentum 1990s bull market. Stocks rose during the shutdown, and in the six months following the shutdown, the market was up nearly 6%. Stocks did fall during the government shut down of the fall of 1978, which at 19 days was, after 1996, the second largest shutdown in the past three decades, but only by 2%. And in the half year following that shutdown the market was up 1.2%. 

I remain convinced, a government shutdown is likely beneficial.

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