Will Gov't Shutdown Carry Over Into Debt Ceiling?

Your next video will start in

Recommended Videos

  • Info

  • Comments


Oct. 2 (Bloomberg) -- Bloomberg's Phil Mattingly and JMP Securities' Mark Lehmann comment on the latest developments in the debate over the federal spending bill. They speak on Bloomberg Television's "Street Smart." (Source: Bloomberg)

In town right now.

No optimism, what does it mean for the big deadline.

In the second full day of this shutdown we are starting to get a sense that it will carry right over into the debt ceiling with separate many crises that lawmakers will be dealing with and there is no sense that the shutdown is any closer to ending and what we might actually wind up seeing here are these issues being wrapped up together into one.

No one has a path forward here on what the solution will be.

We all know the things that have to happen.

Is the president not using executive power?

Can he not order the raising of the debt ceiling?

Is there nothing that could be done?

Nobody seems to actually think we will default on our debt.

We spoke to two people at the white house, james sperling made the point that he thinks markets are a bit complacent right now, they do not understand how real this threat actually is, but people have looked at the 14th amendment, they think it gives the president the ability to raise the debt limit on his own without congress.

The white house says that it is an absolute no go and are very confident in their legal analysis, so in terms of things they can do on their own, they feel very limited.

Talk about complacency, at this point the s&p 500 is only down one/four of one percent today.

--14/4 of one percent today.

There is an opportunity here that we will see in the next couple of days regarding negotiations and the presidents meeting tonight.

I think there is more going on behind the scenes and there is a seminal moment for the republican party with proof of what some people would call extremists holding hostage a lot of the rest of the party and my sense is that there is going to be a time with 13 months ago where they are getting reelected where people say it is more important to feel consensus and get reelected rather than go to the part of the party that is making it more difficult.

You are optimistic?

The fact that there are closed door meetings and no one knows anything?

I have been privy to nothing and what i always think about is the invisible hand of the market kind of knows all.

The market would be reacting more strongly?

If this is as dead on arrival as it seems, we will crush up against it, and we were not going to get there, the market would be in much worse shape.

Maybe we are just not there yet.

We were certainly off on monday.

2011, right?

Last-minute deals?

Like a deadline.

Phil mattingly, thanks for joining us from the white house, we appreciate your perspective.

This text has been automatically generated. It may not be 100% accurate.


BTV Channel Finder


ZIP is required for U.S. locations

Bloomberg Television in   change