TO FINANCE AND WHILE WRANGLING CONTINUES OVER THE GOVERNMENT SHUTDOWN IN THE UNITED STATES, ATTENTION IS TURNING TO THE DEBT CEILING.

THE WHITE HOUSE IS WARNING THERE WILL BE DIRE CONSEQUENCES FOR THE GLOBAL ECONOMY IF REPUBLICANS ALLOW THE COUNTRY TO DEFAULT ON ITS DEBT.

 

“FOLKS OUT THERE INCLUDING THE CEOS WHO WERE HERE TODAY ARE WONDERING WHAT THE WORLD ECONOMY AND THE AMERICAN ECONOMY WOULD LOOK LIKE IF WE DEFAULTED FOR THE FIRST TIME. BECAUSE WE KNOW ONE THING, IT WOULD NOT LOOK PRETTY. THE IMPACT WOULD BE CATASTROPHIC ACCORDING TO THE IMF AND OTHERS BUT SINCE IT’S NEVER HAPPENED WE DON’T KNOW QUITE HOW CATASTROPHIC IT WOULD BE AND WE DO NOT WANT TO, AND WE SHOULD NOT EVEN CONTEMPLATE TRYING TO FIND OUT”

 

TO THE MARKETS...

 

THE DOW WAS 59 POINTS DOWN AT THE CLOSE.

THE NASDAQ AND S-AND-P 500 ARE STEADY.

AND IN LONDON OVERNIGHT, THE FOOTSIE ENDED 23 POINTS DOWN.

 

TO COMMODITY PRICES -

WEST TEXAS CRUDE IS TRADING AT 104 U-S DOLLARS A BARREL.

TAPIS CRUDE IS TRADING AT 118 U-S DOLLARS A BARREL.

AND GOLD IS WORTH 1316 U-S DOLLARS AN OUNCE.

THE AUSTRALIAN DOLLAR IS BUYING 94 U-S CENTS, 69 EURO CENTS AND 58 PENCE STERLING.