Yale's Shiller and RBC's Calvasina on U.S. Government Shutdown

The video discusses the ongoing government shutdown and its limited direct impact on the economy and markets. However, it highlights the broader issue of policy uncertainty and dysfunction in Washington, which contributes to market volatility. Experts Laurie Calvin Sina and Robert Shiller provide insights into market reactions, psychological impacts, and investor expectations. The discussion also covers potential risks of market declines and the importance of understanding market dynamics and expectations.

What is the primary concern for markets during the government shutdown according to Laurie Calvin Sina?

• The border wall policy

• Immediate economic impact

• Elevated policy uncertainty

• The shutdown itself

What does Laurie Calvin Sina identify as a recurring concern for investors in surveys?

• Interest rate hikes

• Trade wars

• Trump's policies

• Inflation rates

According to Robert Shiller, what is a significant factor affecting market psychology during the shutdown?

• Long-term recession fears

• Government spending cuts

• Short-term trading opportunities

• Immediate GDP impact

How does Robert Shiller describe the speed at which market expectations can change?

• Predictably fast

• Highly variable

• Consistently slow

• Unchanging

What does Shiller suggest about the possibility of a market decline?

• It is unlikely to happen

• It will definitely happen

• It is not a concern for investors

• It is a risk based on past events