🚨 MARKET ALERT: A MAJOR RISK IS RETURNING FAST
The chances of a US government shutdown this week have surged dramatically — now close to 96%, compared to just about 18% last week.
This isn’t just political drama… it’s a serious liquidity threat for financial markets.
Democrats are refusing to approve the spending bill unless key conditions are accepted, including:
• Mandatory body cameras for immigration officers
• A ban on agents wearing masks during operations
• Stricter rules on home entry and an end to roaming patrols
Republicans are pushing back, emphasizing tougher immigration enforcement and defending current federal practices.
Here’s where things get more concerning:
The US debt ceiling has already been lifted to $41.1 trillion. That gives politicians more room to keep fighting without immediate system failure — which ironically increases the risk of a longer shutdown.
At the same time, economic signals are weakening:
Jobs data is softening, consumer spending is slowing, and corporate bankruptcies are rising.
So why does a shutdown hurt markets?
Because when a shutdown begins, the US Treasury typically rebuilds its cash balance (TGA) by pulling liquidity out of financial markets.
During the October shutdown, the TGA rose by roughly $220 billion — effectively draining that amount from the system and triggering a liquidity squeeze.
If another shutdown happens and lasts longer, the liquidity drain could be significantly larger… and far more damaging for markets.#CZAMAonBinanceSquare #USNFPBlowout #TrumpCanadaTariffsOverturned

