What Will a Gov't Shutdown Mean for the Market?

[tsptalk]

POLL

Without getting into the political aspects of this, and the sobering fact that this could have an impact on the lives of many of our members:

What will a Gov't shutdown mean for the Stock Market?

[coolhand]

I've wondered that myself. I suppose it depends on how freaking contentious the whole thing gets. But besides how the market might react, what about our ability to move funds in TSP?

[tsptalk]

But besides how the market might react, what about our ability to move funds in TSP?
I didn't even think of that. :eek:

The market does tend to like gridlock in Washington, and that would be the positive, but that may not help us if the TSP is closed.

[coolhand]

Looks like you need a contingency plan. ;)


I didn't even think of that. :eek:

The market does tend to like gridlock in Washington, and that would be the positive, but that may not help us if the TSP is closed.

[FAB1]

When will we know if the TSP will be open if there is a shutdown, nothing on the stupid website we are paying for. :mad:

[Frixxxx]

I'm calling to find out!:blink:

Miss Brandy says they are NOT affected by the shutdown!

[Bquat]

The public will take it as a savings to the tax payers but don't know it may be a overall loss because goverment employees get backpay, contractors get paid because of contracts and there is more overtime than normal to catch up the backlog of work. They should just give everyone a two week layoff with unemployments benifits like factories do for summer shut downs, instead of vacations, to save the two week payroll.

[FAB1]

I'm calling to find out!:blink:

Miss Brandy says they are NOT affected by the shutdown!

Good. They should still notify us by the website.

[Appatite]

A government shutdown means the people working the Lincoln m
Memorial and other sites will be staying home. The rest will be working, right? Just the rumor I read this morning.

[Frixxxx]

Good. They should still notify us by the website.
Wow, that's what I told them!

She said it would since call volumes increased for that question!

We'll see!:cool:

[James48843]

Those who actually answer the phones at the call center are no longer Federal employees. They used to be, until it was contracted out under the prior President .


Those answering the phones today at TSP are contractor emplpoyees, and the contract runs year to year.

A shutdown should not affect the ability to move money around in the TSP.

(No special knowledge- just my thoughts on the subject).

[FAB1]

Those who actually answer the phones at the call center are no longer Federal employees. They used to be, until it was contracted out under the prior President .


Those answering the phones today at TSP are contractor emplpoyees, and the contract runs year to year.

A shutdown should not affect the ability to move money around in the TSP.

(No special knowledge- just my thoughts on the subject).

James thats one of the most sensible things I have ever seen you post.

And thats a compliment. Really

[tsptalk]

Those who actually answer the phones at the call center are no longer Federal employees. They used to be, until it was contracted out under the prior President .

Those answering the phones today at TSP are contractor emplpoyees, and the contract runs year to year.

A shutdown should not affect the ability to move money around in the TSP.

(No special knowledge- just my thoughts on the subject).
I was thinking that too (because they are contractors) but do gov't contractors continue to work during a shutdown? Officially, they wouldn't be getting paid, no?

Here's an article I found on the shutdown ... Psst. No shutdown during a 'government shutdown' (http://news.yahoo.com/s/ap/20110224/ap_on_re_us/us_what_shutdown)

"Regardless, federal contractors would lose out. Many contract workers could be furloughed without pay and not receive lost wages retroactively, especially in an extended shutdown. "

[FundSurfer]

The markets don't like uncertainty. There are a bunch of other things going on right now that make the markets jittery. I think the markets go down, but not like a rock. I think an interesting poll would be, will we have a shutdown and if so how long. I'm thinking we have a weekend shutdown. What will be interesting is to see who blinks first.

[Handballer]

A government shutdown means the people working the Lincoln Memorial and other sites will be staying home. The rest will be working, right? Just the rumor I read this morning.
__________________
Aiming for one of those 15% years. Man, that would be nice.

Hope you get it (the 15%). Me be happy to be within 15% of the tracker leader eoy. Disreguard my signature for the present.

[FAB1]

Take the Poll and/or post your comments!

[burrocrat]

i'm more concerned with what the markets might do before the shut down.

got all my travel money reimbursed, payday is next monday but usually hits the bank 24:00 friday night, plus my emergency accounts, and i'm getting a new computer.

please, please, hold out for a sensible sparse budget boys, and i could use a free two weeks off.

[pmcint01]

If there is a shutdown, can you take leave during it and still get paid?

[alevin]

If there is a shutdown, can you take leave during it and still get paid?

sorry, but no. In fact you'd be wasting your a/l if you did that. think of it as involuntary-ie you would be at work if you could, therefore if/when the gov turns back on, we are likely to get reimbursed for time presumed we would have been working. thats the way it went last time.

nobody (of those told to stay home) gets paid unless the gov turns back on, once it turns off. if you are required to work during the shutdown (some people would be), you'll get paid regardless.

[pmcint01]

I read one article that they'd have to turn off the blackberry service so that you wouldn't be able to do any work during the shutdown. Apparently part of the anti-deficiency act does not allow people to work if the government can't pay them.

[alevin]

Let's see, the Pres., Joint Chiefs of Staff, etc. other "essential employees" as defined-they will stay on the job, their blackberries wont be turned off. again, "essential employees" will continue working and get paid. all others will be required to stay home and not work until called back.

[Scout333]

Let's see, the Pres., Joint Chiefs of Staff, etc. other "essential employees" as defined-they will stay on the job, their blackberries wont be turned off. again, "essential employees" will continue working and get paid. all others will be required to stay home and not work until called back.

Just read a short blurp that Reps and Dems are close to an agreement for a 2 week extension. Would delay closing for a short while.

[Scout333]

If there is a shutdown, can you take leave during it and still get paid?

Last shutdown they did not allow leave to be taken. Makes sense if you think about it. They don't have money to pay us since we don't have a budget. If they could pay us we would be working.:(

[nasa1974]

The last shutdown I do not remember anything about leave. We were told to apply for unemployment and wait to get called back. The budget passed and we all got paid for the time off. This time if we shutdown I would not think Congress will pay us for the time off. Huge money savings. Just my opinion.

[Mcqlives]

Issue about not getting compensated for pay during any furlough days concerns me as I am one of those "essential" workers (1811). (At least they called us "essential" during the 90's shutdown.) OH well, maybe we all should become day-traders!

[Steadygain]

Well I believe I can say with the greatest confidence that 'If the MARKETS would take a brief dive off a high cliff'....:p

It won't have anything to do with a government 'shut-down'. :cheesy:

The MARKETS have settled in very cozy with the idea that millions and millions will remain either unemployed or under employed.


But as I told my kids over the weekend: 'The gap between those who live paycheck to paycheck and those who don't will likely stand out a lot more in the months to come. Global changes may push up the price of GAS.'

[FAB1]

I voted UP

With Government outta the way Capitilism should thrive! :D

[Steadygain]

I voted UP

With Government outta the way Capitilism should thrive! :D


WOW!!!! That's extremely well put.

I totally agree !!!

Nevermind my other comment

[Silverbird]

Issue about not getting compensated for pay during any furlough days concerns me as I am one of those "essential" workers (1811). (At least they called us "essential" during the 90's shutdown.) OH well, maybe we all should become day-traders!

That was the issue last time - they are obligated to pay people who have to work. The problem was, it would cost more to sort out who worked and who was on furlough (partially because the decision is on an agency by agency basis) than it would cost to pay everyone.

[James48843]

A very good writeup in Federal Times about what happens when a government shutdown occurs. I will not post any excerpts of it here due to my feelings about Federal Times and their anti-human being overly agressive copywrite pursuit policies-

but I'll give you this link- just add http:// to the front end of it.

federaltimes.com/article/20110228/AGENCY01/102280301/1001

and you'll have some good information.