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Washington's budget wrangling finally led to a partial government shutdown and what happened around the world? Not much.
In the end, the shutdown did not produce the violent reaction that so many expected, but the market did reprice based on what it knew. It's like worrying: it gives you something to do, but does not get you anywhere.
(Read more: 800,000 out of work as US government shuts down)
Think about it. The market is off 3.2 percent (nothing to get all worked up about) over the past two weeks and in the end, a shutdown does not make a commentary on the state of the economy at all. It is more a statement of the political divisiveness that exists along with the complete lack of vision in the current class of legislators in D.C.
Yes, it may be a bit uncomfortable for some and may end up causing disruptions, but in the end, it should not destroy the momentum unless it drags on and on. Recall that the last government shutdown (Clinton administration) saw the market fall some 4 percent only to rally nearly 10 percent in the month after it ended, according to S&P Capital IQ.
U.S. stocks traded higher Tuesday because someone finally made a decision! We now know the outcome and the market is OK with that. There is some clarity. Will this "time out" allow cooler heads to prevail? The sense out of D.C. is that this could go for two weeks and if so we will then be up against the debt ceiling deadline and is THIS something to really worry about? They are lining up on both sides and making the argument.
Will Treasury Secretary Jack Lew run out of money or will we just prioritize what bills get paid out of the revenues coming in? Are politicians creating this drama for their own gain? And the world turns.