stock market and government shutdown

What The Government Shutdown Is Doing to the Markets

Yesterday, CNBC hosted Money Morning Chief Investment Strategist Keith Fitz-Gerald to talk about what the government shutdown is doing to the markets.

Fitz-Gerald wasn't surprised to see U.S. markets climb Tuesday, on the hopes of a short-lived government shutdown.

That said, he doesn't think investors have adequately priced in the government shutdown and the risk of a default. He uses the CBOE Volatility Index (VIX) to show viewers why this is an artificial stabilization of prices.

Watch as Fitz-Gerald details the shutdown effect on markets and the global damage that will occur if the government defaults:

And when you're done viewing, here is more information on exactly What's Closed in a Government Shutdown