Dow off over 100 points with no end to US shutdown in sight

US index the Dow Jones Industrial Average is off over 100 points this session as investors are starting to get worried about the possibility of a default.

Earlier today an aide of GOP speaker John Boehner said that President Barack Obama had called - apparently the Democrats won't negotiate until after the debt ceiling is raised.

Boehner spokesman Brendan Buck said that "the President called the speaker again today to reiterate that he won't negotiate on a government funding bill or debt limit increase".

We're now in the eighth day of the first Federal government shutdown in 17 years - and some think that a default by the US government could mean a worse recession than that seen after the 2008 crisis.

Meanwhile analysts at Capital Economics are saying that the "US government is not Lehmans" and that the fall-out of a default "should be limited and far less severe than that which followed the collapse of Lehman Brothers".