Economy Hurting From Shutdown, Sequestration Cuts

The effects of the government shutdown on the economy are cascading.

The government has already been operating with a smaller budget due to sequestration cuts last March, which are now starting to kick into effect.

Diane Swonk, chief economist with Mesirow Financial, says the shutdown is not only taking a toll on furloughed government workers, but Wall Street and the financial markets are also feeling the effects of the crisis.