[video] Quick Take: Shutdown Speeds Selling
NEW YORK (TheStreet) -- Worries continue to grow over the prolonged shutdown of the government. Alan Valdes of DME Securities told TheStreet's Debra Borchardt the U.S. government needs to get it together.
Valdes said that not many investors are looking to put money to work while so much uncertainty still exists and the low volumes are causing equities to drift lower. Also, we will not get the nonfarm payrolls report for September this Friday because of the shutdown.
He said foreign investors, particularly in China, believe we have no leadership and our government is full of incompetent officials. However, there is one person who will step up to the plate, Valdes argued: Ben Bernanke. If the government doesn't get it together, we could be looking at a default, but the Federal Reserve could find a way to pay the bondholders.
Valdes concluded that the government could undue the last two years of market performance in one week, if they're not careful with how they handle things going forward. They need to negotiate, he stressed.-- Written by Bret Kenwell in Petoskey, Mich. Follow @BretKenwell
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