Following a resumption of the "failed" debt ceiling discussion as of 11 am this morning, John Boehner has just released the following broad statement: “As I said last night, over this weekend Congress will forge a responsible path forward. House and Senate leaders will be working to find a bipartisan solution to significantly reduce Washington spending and preserve the full faith and credit of the United States." So much for the debt talks breaking down. And with so many "deficit-cutting" loose ends, all of which will eventually be resolved, probably by the time Asia opens tomorrow, here is Bloomberg's latest attempt at summarizing what is currently going on and why for Obama getting a solution before the market opens bidless on Monday is the most important thing right now.
Senate Republican Leader Mitch McConnell said congressional leaders are “committed” to preventing a U.S. default following a meeting with President Barack Obama a day after talks on a broader deal to cut the deficit collapsed.
“The president wanted to know that there was a plan for preventing national default,” McConnell of Kentucky said in a statement. “The bipartisan leadership in Congress is committed to working on new legislation that will prevent default while substantially reducing Washington spending.”
After the meeting, which lasted under an hour, House Democratic leader Nancy Pelosi of California said she hopes a framework for an agreement will be worked out this weekend and that congressional leaders must “make every moment count.”
She told reporters there would “absolutely, positively not” be a short-term deal. The president wants an agreement long enough to last through the 2012 elections.
With the Aug. 2 deadline to raise the $14.3 trillion debt ceiling approaching, Obama said at the White House last night that “at minimum” Congress must act to avoid a U.S. default that would roil financial markets and damage the economy. He said he was consulting with Treasury Department officials about a default’s potential consequences.
“It’s very important that the leadership understands that Wall Street will be opening on Monday, and we’d better have some answers during the course of the next several days,” Obama said.
Said otherwise, it is very important for America to understand that the only thing this administation cares about is Wall Street.