US Deadlock shutdown 01/10/2013

US Deadlock shutdown

01/10/2013

US Deadlock Shutdown occurs due to Decreasing of New York Shares.

Shares in New York closed lower as the prospect of a shutdown of some US government activities looks increasingly likely.

The Dow Jones closed down 128 points, or 0.84%, while the S&P 500 and Nasdaq fell by 0.60% and 0.27% respectively.

However, all three indexes were up for the month, buoyed by a strengthening US economic recovery.

The US needs to agree a new spending bill before the financial year ends at midnight on Tuesday.

But political divisions have resulted in a stalemate and there are worries over the economic impact of a shutdown of the US government.

"The shutdown will have a very real economic impact on very real people right away," said US president Barack Obama late on Monday, after it seemed as if negotiations had all but broken down.

For all the absence of any big economic or financial shocks for the best part of two years, substantial accidents can still happen, in a global economy that remains structurally flawed in a serious and substantive way”

If the government does shut down on 1 October, as many as a third of its 2.1 million employees are expected to stop work - with no guarantee of back pay once the deadlock is resolved.

National parks and Washington's Smithsonian museums would close, pension and veterans' benefit cheques would be delayed, and visa and passport applications would be stymied.

Programmes deemed essential, such as air traffic control and food inspections, would continue.