U.S. and European debt woes create vicious market cycle
U.S. President Barack Obama unveils his jobs plan at a Joint Session of Congress at the U.S. Capitol in Washington, D.C.
Steve Chiotakis: Yet again, a stalemate in Washington is figuring into the global economy. With a budget deadline of October 1st, Republicans and Democrats continue to be far apart on a measure that would avert a government shutdown -- the effects of which would pile onto financial troubles already seen around the world.
From Washington, Marketplace's John Dimsdale reports.
John Dimsdale: Early this morning Republicans in the House approved a short-term budget that has little chance of passing the Democratic-run Senate. Without a resolution by the end of next week, the Federal government runs out of money.
Irish economist David McWilliams says the looming U.S. impasse only adds to global market worries about Europe's own financial crisis.
David McWilliams: All of this tends to elevate the significance of stalemate in the United States. The reason being, if the United States can't show leadership, then the European fracturing looks quasi-normal and people say "Well, what do you expect?" The markets get incredibly jittery.
The Senate is expected to reject the House-passed budget later today. Even when a compromise is reached over disaster funding this budget agreement only lasts until the middle of November.
In Washington, I'm John Dimsdale for Marketplace.