THE HOUSE BAGGERS COULD REALLY HURT AMERICA

I've gathered a few reports on how badly the shut down will harm the U.S. economy.

The LA Times reports that "most analysts predict that a two-week partial government shutdown would shave 0.3 to 0.4 of a percentage point from economic growth in the fourth quarter" and POLITICO reports that if the shutdown lasts 3 or 4 weeks, then "you do serious damage to the economy, triggering a recession and destroying consumer confidence in a way that could take years to rebuild.”

The WaPo echoes the POLITICO: "Economists estimate that the cumulative effect of a prolonged shutdown could trim economic growth in the final three months of the year by up to 1.4 percentage points."

Bloomberg reports on the effects of different lengths of the shutdown:

Lexington, Massachusetts-based IHS estimates that its forecast for 2.2 percent annualized growth in the fourth quarter will be reduced 0.2 percentage point in a weeklong shutdown. A 21-day closing like the one in 1995-96 could cut growth by 0.9 to 1.4 percentage point, according to Guy LeBas, chief fixed income strategist at Janney Montgomery Scott LLC in Philadelphia.

The Christian Science Monitor sums it up in its headline:

Short government shutdown? Small hit to economy. Long one? A recession.