Wall St. wonders if Obama wants a selloff
Wall Street wonders if Obama wants a selloff.
President Barack Obama's best friend could be Wall Street's worst nightmare.
Published: Thursday, 3 Oct 2013 | 8:27 AM ET
CNBC's John Harwood speaks with President Barack Obama on the government shutdown and stalemate in Congress.
A little market crisis—not enough to crash the economy into recession but enough to stir public fear that would push Republicans to the negotiating table—could be just what settles the impasse in Washington and reopens the government, according to investing pros and market observers.
In an exclusive interview with CNBC, the president warned Wall Street that this shutdown could be different. Previous halts in nonessential government activities have caused little market reaction, with major averages actually rising most of the time in the month after the shutdowns are settled.
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Obama's approach, though, was beginning to wear thin with some market participants.
"It's obvious this stalemate is going to continue for many days, if not weeks, now based on the 'sharp elbow' responses by the president in the CNBC piece," Todd Schoenberger, managing director at LandColt Capital, said in a statement. "Unless a resolution in Washington happens soon, investors should brace themselves for violent volatility in the equity markets for the foreseeable future."