Agile Computing Authors: Liz McMillan, Pat Romanski, Yeshim Deniz, Elizabeth White, Rene Buest

Related Topics: Agile Computing, Government Cloud

Agile Computing: Blog Post

Will the Shutdown Devastate the US Economy?

Will the government shutdown affect your business?

Having more than 800,000 employees not drawing their paychecks can't be a good thing in a struggling US economy where job reports are watched as closely as the Dow Jones Industrial Average.

Some experts don't believe the government shutdown will have much of a negative impact. According to the research firm IHS Global Insight, "The spending habits of government employees probably would not change if the shutdown was short-lived, particularly if they believed that they would receive back (pay)."

The average American will likely be thinking of the government shutdown when making purchases, but spending will probably pick back up when the things go back to normal. The shutdown "hurts consumer confidence, and it doesn't help with cash flow, but in terms of financial impact it's going to be made up when the government reopens," said Stuart Hoffman, chief economist at PNC Financial Services Group.

Yet experts are also quick to point out that if the shutdown lasts too long, it will start to have an effect on the private sector. When government employees are sitting at home, they are not taking taxicabs to work or eating lunch in restaurants.

They are not picking up a newspaper at the newsstand or grabbing a drink with colleagues after work. The longer national parks and other destinations remain closed, the more the tourism trade will feel the effects.

The overall economy might find itself hurt more by a troubled tourism industry than most people think, according to Mark Zandi of Moody's Analytics: "... if you look since the recovery began, this (travel and tourism) is the one sector that's added the most jobs to the economy."

Hurting the struggling housing market
Warren Buffett boldly stated: "... if we can fix the housing market, we can fix the economy." Since the housing bubble has shouldered a majority of the blame for the economic crisis, he might be right.

So for a financial sector that is just starting to get back on its feet, the shutdown couldn't have happened at a worse time for the housing market.

"Lenders processing loans that need tax transcripts, Social Security number verification, or FHA home loans face longer delays and reduced functionality," says David H. Stevens, the president and CEO of the Mortgage Bankers Association.

"The furloughs can disrupt time-sensitive mortgage transaction deals by interfering with borrower lock agreements and causing interest rate disparities from the time of closing to the time the loan is securitized."

Stock market response
To counter any negative effects the shutdown might have on the current bull market, Wall Street turned to statistics showing how past shutdowns were short-lived and their impact on the market were brief as well.

Those who are trying to calm investors' fears have not ignored the fact that three of the four major stock indexes in the US have shown gains since the shutdown began.

Despite the facts and figures being released by people trying to keep the markets stable, there has been a great deal of fluctuation in all the major indexes since the start of the government shutdown. However, some believe that dips in trading are due more to the looming debt ceiling debate and less about the shutdown.

In a memo sent to clients, Dan Greenhaus, chief global strategist for the brokerage BTIG warned that ill-will from the shutdown could spill over into the coming debate over raising the debt limit.

"We had said we were starting to get nervous. If this continues, nervousness will have to give way to fright."

More important than anything else is how the public views the economy in light of the current political battle. A Gallup Poll shows that 2 out of 3 Americans feel the economy is getting worse. That lack of confidence is likely to do more to stall a recovery than the current lack of cooperation in Washington.

More Stories By Drew Hendricks

Drew Hendricks is a writer, as well as a tech, social media and environmental enthusiast, living in San Francisco. He is a contributing writer at Forbes, Technorati and The Huffington Post.

@ThingsExpo Stories
Dion Hinchcliffe is an internationally recognized digital expert, bestselling book author, frequent keynote speaker, analyst, futurist, and transformation expert based in Washington, DC. He is currently Chief Strategy Officer at the industry-leading digital strategy and online community solutions firm, 7Summits.
Digital Transformation and Disruption, Amazon Style - What You Can Learn. Chris Kocher is a co-founder of Grey Heron, a management and strategic marketing consulting firm. He has 25+ years in both strategic and hands-on operating experience helping executives and investors build revenues and shareholder value. He has consulted with over 130 companies on innovating with new business models, product strategies and monetization. Chris has held management positions at HP and Symantec in addition to ...
Cloud-enabled transformation has evolved from cost saving measure to business innovation strategy -- one that combines the cloud with cognitive capabilities to drive market disruption. Learn how you can achieve the insight and agility you need to gain a competitive advantage. Industry-acclaimed CTO and cloud expert, Shankar Kalyana presents. Only the most exceptional IBMers are appointed with the rare distinction of IBM Fellow, the highest technical honor in the company. Shankar has also receive...
Enterprises have taken advantage of IoT to achieve important revenue and cost advantages. What is less apparent is how incumbent enterprises operating at scale have, following success with IoT, built analytic, operations management and software development capabilities - ranging from autonomous vehicles to manageable robotics installations. They have embraced these capabilities as if they were Silicon Valley startups.
The standardization of container runtimes and images has sparked the creation of an almost overwhelming number of new open source projects that build on and otherwise work with these specifications. Of course, there's Kubernetes, which orchestrates and manages collections of containers. It was one of the first and best-known examples of projects that make containers truly useful for production use. However, more recently, the container ecosystem has truly exploded. A service mesh like Istio addr...
Predicting the future has never been more challenging - not because of the lack of data but because of the flood of ungoverned and risk laden information. Microsoft states that 2.5 exabytes of data are created every day. Expectations and reliance on data are being pushed to the limits, as demands around hybrid options continue to grow.
Poor data quality and analytics drive down business value. In fact, Gartner estimated that the average financial impact of poor data quality on organizations is $9.7 million per year. But bad data is much more than a cost center. By eroding trust in information, analytics and the business decisions based on these, it is a serious impediment to digital transformation.
Business professionals no longer wonder if they'll migrate to the cloud; it's now a matter of when. The cloud environment has proved to be a major force in transitioning to an agile business model that enables quick decisions and fast implementation that solidify customer relationships. And when the cloud is combined with the power of cognitive computing, it drives innovation and transformation that achieves astounding competitive advantage.
As IoT continues to increase momentum, so does the associated risk. Secure Device Lifecycle Management (DLM) is ranked as one of the most important technology areas of IoT. Driving this trend is the realization that secure support for IoT devices provides companies the ability to deliver high-quality, reliable, secure offerings faster, create new revenue streams, and reduce support costs, all while building a competitive advantage in their markets. In this session, we will use customer use cases...
Digital Transformation: Preparing Cloud & IoT Security for the Age of Artificial Intelligence. As automation and artificial intelligence (AI) power solution development and delivery, many businesses need to build backend cloud capabilities. Well-poised organizations, marketing smart devices with AI and BlockChain capabilities prepare to refine compliance and regulatory capabilities in 2018. Volumes of health, financial, technical and privacy data, along with tightening compliance requirements by...
Andrew Keys is Co-Founder of ConsenSys Enterprise. He comes to ConsenSys Enterprise with capital markets, technology and entrepreneurial experience. Previously, he worked for UBS investment bank in equities analysis. Later, he was responsible for the creation and distribution of life settlement products to hedge funds and investment banks. After, he co-founded a revenue cycle management company where he learned about Bitcoin and eventually Ethereal. Andrew's role at ConsenSys Enterprise is a mul...
DXWorldEXPO LLC announced today that "Miami Blockchain Event by FinTechEXPO" has announced that its Call for Papers is now open. The two-day event will present 20 top Blockchain experts. All speaking inquiries which covers the following information can be submitted by email to [email protected] Financial enterprises in New York City, London, Singapore, and other world financial capitals are embracing a new generation of smart, automated FinTech that eliminates many cumbersome, slow, and expe...
DXWorldEXPO | CloudEXPO are the world's most influential, independent events where Cloud Computing was coined and where technology buyers and vendors meet to experience and discuss the big picture of Digital Transformation and all of the strategies, tactics, and tools they need to realize their goals. Sponsors of DXWorldEXPO | CloudEXPO benefit from unmatched branding, profile building and lead generation opportunities.
The best way to leverage your Cloud Expo presence as a sponsor and exhibitor is to plan your news announcements around our events. The press covering Cloud Expo and @ThingsExpo will have access to these releases and will amplify your news announcements. More than two dozen Cloud companies either set deals at our shows or have announced their mergers and acquisitions at Cloud Expo. Product announcements during our show provide your company with the most reach through our targeted audiences.
DevOpsSummit New York 2018, colocated with CloudEXPO | DXWorldEXPO New York 2018 will be held November 11-13, 2018, in New York City. Digital Transformation (DX) is a major focus with the introduction of DXWorldEXPO within the program. Successful transformation requires a laser focus on being data-driven and on using all the tools available that enable transformation if they plan to survive over the long term. A total of 88% of Fortune 500 companies from a generation ago are now out of bus...
With 10 simultaneous tracks, keynotes, general sessions and targeted breakout classes, @CloudEXPO and DXWorldEXPO are two of the most important technology events of the year. Since its launch over eight years ago, @CloudEXPO and DXWorldEXPO have presented a rock star faculty as well as showcased hundreds of sponsors and exhibitors! In this blog post, we provide 7 tips on how, as part of our world-class faculty, you can deliver one of the most popular sessions at our events. But before reading...
Cloud Expo | DXWorld Expo have announced the conference tracks for Cloud Expo 2018. Cloud Expo will be held June 5-7, 2018, at the Javits Center in New York City, and November 6-8, 2018, at the Santa Clara Convention Center, Santa Clara, CA. Digital Transformation (DX) is a major focus with the introduction of DX Expo within the program. Successful transformation requires a laser focus on being data-driven and on using all the tools available that enable transformation if they plan to survive ov...
DXWordEXPO New York 2018, colocated with CloudEXPO New York 2018 will be held November 11-13, 2018, in New York City and will bring together Cloud Computing, FinTech and Blockchain, Digital Transformation, Big Data, Internet of Things, DevOps, AI, Machine Learning and WebRTC to one location.
DXWorldEXPO LLC announced today that ICOHOLDER named "Media Sponsor" of Miami Blockchain Event by FinTechEXPO. ICOHOLDER give you detailed information and help the community to invest in the trusty projects. Miami Blockchain Event by FinTechEXPO has opened its Call for Papers. The two-day event will present 20 top Blockchain experts. All speaking inquiries which covers the following information can be submitted by email to [email protected] Miami Blockchain Event by FinTechEXPO also offers s...
With tough new regulations coming to Europe on data privacy in May 2018, Calligo will explain why in reality the effect is global and transforms how you consider critical data. EU GDPR fundamentally rewrites the rules for cloud, Big Data and IoT. In his session at 21st Cloud Expo, Adam Ryan, Vice President and General Manager EMEA at Calligo, examined the regulations and provided insight on how it affects technology, challenges the established rules and will usher in new levels of diligence arou...