Obama on shutdown: 'I'm exasperated'

President Obama says he is "exasperated" by the sequence of events that led to the government shutdown and that Wall Street should also be concerned.

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"Am I exasperated? Absolutely I'm exasperated because this is entirely unnecessary," Obama said in an interview on CNBC. "I am exasperated with the idea that, unless I say that 20 million people, 'You can't have health insurance. They will not reopen the government.' That is irresponsible," he said.

The president maintained that the instability of the government shutdown would have a profound impact on the economy.

"When you have a situation in which a faction is willing to potentially default on U.S. obligations, then we are in trouble," he added.

Throughout his presidency, Obama said he's "bent over backwards to work with the Republican Party and have purposely kept my rhetoric down."

But this time it's different.

He says he won't negotiate with Republicans until they can reach an agreement on the budget and debt ceiling, respectively.

"As soon as we get a clean piece of legislation that reopens the government ... until we make sure that Congress allows Treasury to pay for things that Congress itself already authorized, we are not going to engage in a series of negotiations," he said, adding that his rationale is "very simple."

"If we get into the habit where one party is allowed to extort ... then any president who comes after me will be unable to govern effectively," he told CNBC.