In this Wednesday, Sept. 25, 2013, photo, trader Robert McQuade works on the floor of the New York Stock Exchange. Worries about the U.S. economy and a looming budget battle in Washington kept global stock markets in check Thursday Sept. 26, 2013. (AP Photo/Richard Drew)
Ogorek: Investors Worried About More Than Shutdown
Buffalo, NY (WBEN) Concerns over the shutdown are being overshadowed on Wall Street by something else. One local investment expert says investors are keeping an eye out for a possible debt default.
"I think they're going to be moderately concerned, but nothing dramatic. The Dow might drop a percent or two," says Tony Ogorek of Ogorek Wealth Management. "I think the larger concern is the debt ceiling."
Ogorek says investors have gone through a shutdown in the past and survived. "We understand how the markets react, and we understand essential services will still be provided," explains Ogorek. However, one can't say the same about the debt ceiling.
"We never had a debt default in the history of the US. In the event we have this because Congress did not raise the debt ceiling, that would have a fairly dramatic effect," says Ogorek, who adds Wall Street could have the volatility last seen during the height of the 2008 economic recession.
Ogorek has harsh words for House Speaker John Boehner. "Boehner has the ability to put the Senate's funding bill on the House floor for a vote, and apparently what he's doing is trying to keep his speakership at the expense of putting a funding vote out there," says Ogorek. "Unfortunately, he's acitng more like a politician than a statesman, when we need a statesman in that position."