Conventional political wisdom has been that the current government shutdown will have lasting negative effects for the Republican Party. One such reason for that line of thinking is that the people who traditionally back the GOP — Wall Street financiers and corporate CEOs — are mortified about the impact of an extended shutdown that pushes into a debt ceiling fight. They are particularly scared of this prospect seeing certain members of the House digging in so firmly on ideological lines, and they are afraid that no end is in sight.
President Obama appeared on CNBC and pretty much validated all their fears. When host John Harwood asked about the fears on Wall Street and about just how far the Republicans are willing to go this time, Obama said categorically, “I think they should be concerned.” With that word coming from the most powerful man in the free world, one has to wonder if that will be enough to get those CEOs and Wall Street wizards off their seats and into action. If they do hold the purse strings, or at least a rather sizable portion of them, maybe that’s the way to break through the rhetoric and intransigence of the House GOP.
One thing is for certain, the longer the shutdown goes, the worse off everyone will be. From Main Street to Wall Street, the impact of nearly a million federal workers being furloughed will hit local economies, and any threat to our credit rating is a direct assault on the lending and borrowing capabilities on Wall Street, which will scare the daylights out of all of them.
Watch a clip President Obama’s interview on CNBC below: