Default looms with no deal reached

WASHINGTON — A frantic day of legislative maneuvering ended in futility for Speaker John A. Boehner on Tuesday, as the most conservative members of the House refused to back his proposed compromise to end the standoff over the federal budget.

The failure leaves a bipartisan Senate plan negotiated by Majority Leader Harry Reid (D-Nev.) and Minority Leader Mitch McConnell (R-Ky.) as the sole way out of a stalemate that risks a U.S. default on its bills and huge economic disruptions.

A bill that passed the Senate would receive Democratic support in the House, guaranteeing a majority if Boehner were willing to bring it to the floor even without the backing of most Republicans. He is widely expected to do so, however, having run out of time for other options.

wall-streetEarlier in the day, Boehner reiterated that he opposed allowing the government to risk default.

“I have made clear for months and months that the idea of default is wrong, and we shouldn’t get anywhere close to it,” he said.

Shortly after House leaders officially called off a vote on their most recent plan, spokesmen for Reid and McConnell said Senate talks were resuming. They had paused for the day to allow Boehner (R-Ohio) a chance to get a bill through the House.

The two leaders are “very close” to a deal, a top Senate aide said.

For more on this LA Times story, click here.

1 Comment

  • Franklin

    The whole world is watching the loonies in Washington DC. What ridiculous plan will the Republicans try next? Time is running out and billions of taxpayer dollars are being wasted. Why does the GOP hate America? Why destroy the economy again?

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s