[video] Quick Take: Day Three of the Shutdown
NEW YORK (TheStreet) -- Equities markets didn't display a lot of concern when the government shutdown began Oct. 1. However, markets are growing more worried as each day passes without resolution.
Independent trader Ross Greenspan told TheStreet's Jill Malandrino that the shutdown is causing more weakness in the economy. At first, the market didn't seem concerned over the shutdown, showing a belief in continued quantitative easing. But as Malandrino noted, there has certainly been a shift in the market's price action towards a prolonged shutdown, especially with the debt ceiling debate quickly approaching.
Greenspan added that there hasn't been a lot of volatility that can be attributed solely to the government shutdown. However, markets are beginning to get a little skittish, with participants realizing that the current recovery isn't as strong as previously thought and more political headwinds on the way.
Although the risk of a U.S. default has been rising, which is indicative by the interest rate markets, Greenspan concluded that the government will more than likely "kick the can down the road."For now, market prices are discounting the potential disaster, but the worry is beginning to increase. -- Written by Bret Kenwell in Petoskey, Mich. Follow @BretKenwell Follow @optionsprofits
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