Goldman Sachs on the resignation of US House Speaker John Boehner
John Boehner announced today he will quit politics at the end of October. The move came after he realized his long-standing dream of having the Pope address Congress.
"In our view, this significantly reduces the probability of a government shutdown next week," analysts at Goldman Sachs write.
They say his resignation is a strong signal that he plans to bring the clean extension up for a vote despite opposition from House conservatives.
For the longer-term, however, it leads the Republican party more vulnerable to shutdowns and the fringe Right of the party.
"In essence, this announcement is meant to preempt the expected attempt to remove him from his position after he extends spending authority," Goldman writes.
Although this limits the short-term questions, worries about the debt limit and a multitude of other issues will continue to simmer.
