US President Barack Obama has recently spoken with CNBC’s John Harwood about the ongoing US government shutdown saga, the contentious healthcare law, and the Fed.
Obama said Wall Street should be genuinely preoccupied about the impasse in Washington, saying "this time I think Wall Street should be concerned", and adding that "when you have a situation in which a faction is willing to default on U.S. obligations, then we are in trouble."
According to Obama, the non-negotiable stance by the Republicans puts in jeopardy not just the proper functioning of the government, but also threatens a default by the US in its obligations, something which may have unprecedented chaotic consequences in the market, yet no segments of the market even think about such horrendous possibility.
Further quotes from Obama, as mentioned by CNBC were:
"I am exasperated with the idea that unless I say that 20 million people, 'you can't have health insurance, they will not reopen the government.' That is irresponsible."
"If we get into the habit where one party is allowed to extort, ... then any president who comes after me we be unable to govern effectively."
"One thing I know that the American people are tired of, and I have to assume businesses are tired of, is this constant governing from crisis to crisis."
"It is important for [Wall Street] to recognize that this is going to have a profound impact on our economy and their bottom lines, their employees and their shareholders."
President Obama added the following: "Speaker Boehner can end this by bringing clean bill to the floor", adding that "I am prepared to negotiate after we get clean bill that reopens government."
WALL STREET CLOSED LOWER DESPITE ITS LATE RECOVERY
The US stocks market closed lower on Wednesday after reaching multi-week lows in the early session but recovering some ground in the rest of the session.
Risk aversion was fueled by the weaker than expected US ADP employment report (166K in September vs 180K expected). However a meeting organized by President Obama and congressional leaders re-ignited hopes of a quick solution to the current Government shutdown and will provide a start for the debt ceiling negotiations.
The Dow touched 3-week lows at the early session, but it managed to cut losses by the half. The Dow and the S&P 500 have traded down for 8th time in the last 10 sessions.
The DJIA declined 58.56 points or 0.39% to close the day at 15,133.14; the S&P 500 eased 1.13 points or 0.07% to 1,693.87; and the Nasdaq Composite lost 2.96 points or 0.08% to 3,815.02.