Government Shutdown
A political standoff over immigration enforcement and the funding of the Department of Homeland Security (DHS) led to a short government shutdown this week. The shutdown lasted four days and ended as lawmakers agreed to temporarily fund DHS as they negotiate over immigration enforcement oversight.
Our Take: The shutdown had minimal effects on financial markets. Most importantly, the release of this week’s employment report was delayed as the shutdown temporarily closed the Bureau of Labor Statistics (BLS). The BLS will now release the employment report on Wednesday, February 11.
The Gary Bears?
There is football news this week outside of Santa Clara as the Chicago Bears continue stadium talks with neighboring Indiana. Senate lawmakers in Indiana have advanced a bill creating the Northwest Indiana Stadium Authority. The Senate Bill 27, which allows the Stadium Authority to purchase land, finance the construction, and manage a new stadium, is headed to the Indiana House of Representatives. However, business owners and politicians in Arlington Heights, Illinois have events scheduled next week to gather support for the team to proceed with plans to build on the 326-acre site in Illinois.
Our Take: No matter which location the Bears select, the stadium will generate economic development and jobs for the selected municipality. However, the larger question remains: Is the increased economic activity enough to make public financing of stadiums worthwhile? Indiana seems to think it is and has expressed its willingness to finance and manage the stadium. In contrast, the Bears organization would be responsible for the construction and ownership of the Arlington Heights location and has asked Illinois for certain financial considerations.