Bank of America expects Congress to pass a continuing resolution and thus avoid a government shutdown on October 1.
BoA say, though, that its a 'close call':
- situation remains fluid
- likelihood of a shutdown, a brief one, is edging closer to 50%
This reminds me of that time Fitch downgraded the US citing:
- repeated debt limit standoffs and last-minute resolutions
- a steady deterioration in standards of governance
- expected fiscal deterioration over the next three years
And everyone who had been screaming about the dangers of shutdown and debt default did a flip and laughed at Fitch. Two-faced I guess.
ps. the downgrade was 6 weeks ago: