RE: LeoThread 2025-09-30 11:20

Part 10/13:

Moreover, market volatility, as measured by the VIX, rarely exceeds levels associated with genuine crises during shutdown periods. This suggests that, despite the political theatrics, markets often treat government shutdowns as short-lived inconveniences rather than imminent threats to financial stability.

Escalating Risks: Sovereign Credit and Future Crises

Nonetheless, credit rating agencies are increasingly wary. Moody’s recently flagged the “fragile fiscal trajectory”, citing repeated shutdowns and political brinkmanship as eroding confidence in US government debt. Fitch also highlighted ongoing institutional risks associated with frequent political stalemates, which threaten the sovereign credit rating.