Dow Cracks 15,000 as U.S. Default Fears Mount – 10-3-13

The Dow is trading down more than 1%, off 150+ points so far today as fears about the U.S. government defaulting if the Congress does not act push investors to sell.  The 1-month U.S. treasury has also spiked in yield, as investors exit bonds as well.  All three major stock indexes are down more than 1% at-present.  If the Congress doesn’t act, we will run out of ways to borrow by October 17th, according to the Treasury Department, and will therefore be in default.  It is unlikely the government shutdown and impasse in Congress will last another 2 weeks, but at the moment, financial markets are not convinced that the Congress will find a solution.

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