Well at midnight last night, the government shutdown. What effect will this have on lending?
The Federal Reserve will remain open. Most lending institutions will remain open and doing business. However, some paperwork may be delayed, as the IRS and the SSA offices will be unable to respond to inquiries.
President Obama says a shutdown will further reduce confidence in the government. According to the Gallop polls, the approval rating of Congress is 18%. Can it go much lower?
The Financial Markets so far do not seem to care about the shutdown. What seems to be more important, is the debt ceiling deadline of October 17th. We are in a wait and see mode until then. Hopefully at that point, Congress will do the responsible thing, and not let the country default.