Stock markets await U.S. debt, shutdown solution

This article discusses how stock markets are in a lull period as traders wait for more information about government action in response to the shutdown and debt ceiling. This relates to the discussions we had in class about how future trends can determine prices and affect markets.
 http://money.cnn.com/2013/10/13/investin…

2 Comments »

  1. parkerl Said,

    October 13, 2013 @ 8:48 pm

    It is amazing to see how greatly the status of the United States government effects the financial markets. In class, we addressed the impact that future trends have on prices and markets, and the government shutdown exemplifies this phenomenon. Political and economic uncertainty lead individuals to feel apprehensive about investing. After all, companies worth investing in have a major stake in the wellbeing of the country, and we are in a very precarious situation right now.

  2. peterpak Said,

    October 16, 2013 @ 1:23 am

    As we discussed in class, expected future prices of a good can cause an immediate increase or decrease in the quantity demanded. For this situation, there is no expectation and therefore people do not know what to do which is why there is a lull period while people wait to hear from the government. This is an interesting article because we have discussed expectations but haven’t discussed this type of srare situation.

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