Sunday, July 24, 2011

No Debt Deal, Pres. Obama Frustrated

Before the weekend it seemed as if there was going to be a final deal after all, but over the weekend, things dramatically changed in Washington. On Saturday House Speaker John Boehner walked out of negotiations with President Obama. There was also sings that Republicans are rooting for a short-term deal, once again. Boehner said Sunday his last offer remains on the table as pressure mounted to avert a looming government default.

"It may be pretty hard to put Humpty Dumpty back together again, but my last offer is still out there. I have never taken my last offer off the table," Boehner said on "Fox News Sunday."

Geithner told CNN's "State of the Union" on Sunday that the so-called grand bargain sought by Obama remains in play, but he also opened the door to a two-step process pushed by Republicans that would raise the debt ceiling with some spending cuts now, then bring broader structural and tax reforms next year.

"He needs Democrats for that to work, and Nancy Pelosi said that she will not vote for that approach. And it will not make its way through the Senate. So that's not a viable option. Now there's nothing wrong with doing this in stages, but what we can't do is leave the threat of default hanging over the American economy. That's like a tax on all Americans. It's deeply irresponsible. And you can't put that additional burden of uncertainty and fear on average working Americans, and on American businesses going forward,"Geithner said on Sunday.
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