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Beware ‘real, real scary deadline’: Analyst

Beware 'real, real scary deadline': Analyst

With the federal government shut down after Congress failed to pass a funding bill, another crucial date looms, Chris Krueger of Guggenheim said Wednesday.

"Washington is paralyzed. The staring contest continues. Shutdown, at this point, probably lasts through the weekend, maybe right up until that fateful day of Oct. 17," he said. "The grand strategy for both sides here is basically summarized in two words: Don't blink."

On CNBC's "Fast Money," Krueger said that a failure to raise the debt ceiling by the date would trigger "very tough political decisions at the Treasury," which would have to halt payouts.

(Read more: Apple should tell Icahn to 'stuff it': Henry Blodget)

"Once you get past interest payments, do you go to Social Security? Do you go to air-traffic controllers? Do you go to troops, etc.? I mean, ultimately, we think Congress will eventually raise the debt ceiling, but we're probably going to go right down to the wire if history is any guide," he said.

If lawmakers fail to raise the debt ceiling by then, another more crucial deadline will lie just two weeks beyond that, when the U.S. Treasury Department is scheduled to make massive payments on entitlement programs.

(Read more: Shutdown could trigger 'Fed flare': Brian Kelly)

"The real, real scary deadline is probably Nov. 1," he said.

By CNBC's Bruno J. Navarro. Follow him on Twitter @Bruno_J_Navarro.

— CNBC's Michael Newberg contributed research to this report. Follow him on Twitter: @MikeNewberg.

Trader disclosure: On Oct. 2, 2013, the following stocks and commodities mentioned or intended to be mentioned on CNBC's "Fast Money" were owned by the "Fast Money" traders: John Woods is long WFC; John Woods is long @CL.1; John Woods is long @NG.1; John Woods is long @GC.1; Karen Finerman is long BAC; Karen Finerman is long C; Karen Finerman is long JPM; Karen Finerman is long TGT; Karen Finerman is long GOOG; Karen Finerman is long M; Karen Finerman is short BID; Karen Finerman is long RMAX; Karen Finerman is long MDY PUTS; Tim Seymour is long BAC; Tim Seymour is long INTC; Tim Seymour is long SBUX; Tim Seymour is long F; Tim Seymour is long NCR; Tim Seymour is long PG; Guy Adami is long C; Guy Adami is long GS; Guy Adami is long INTC; Guy Adami is long MSFT; Guy Adami is long AGU; Guy Adami is long NUE; Guy Adami is long BTU; Guy Adami's Linda Snow, works at Merck.

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