Good News: It's Almost Over After Pelosi Says Congress Looking At "Two-Tiered" Deal

Tyler Durden's picture

With 23 hours left until the Asian open (or, more importantly, 19 hours until FX trading resumes) and with today's round of talks now official over after a one hour meeting in Boehner's office with congressional leaders achieved nothing, it is becoming clear that the final debt ceiling outcome will be "no change" in spending or taxing habits and a temporary hike in the debt ceiling, so that the soap opera can be repeated again every three months... and again... and again... and so forth for an "extended period of time" as "transitory solutions' become the new grand consensus. At least we now know the phrase for complete, impotent incompetence in the Hill is: "Two tiered approach" which is how Nancy Pelosi called the last minute attempt at compromise. Per The Hill: "House Minority Leader Nancy Pelosi (D-Calif.) said Saturday night that congressional leaders are considering a two-tiered approach to raising the debt ceiling and reducing the nation’s long-term budget deficit. Pelosi reiterated that she backs “a long-term extension” of the $14.3 trillion debt limit, putting her in line with the demands of President Obama and Senate Majority Leader Harry Reid (D-Nev.)." Alas this now appears to be a mirage: at best the Republicans will agree to a $200-300 billion extension to get the Treasury through for another 2 months (although at the delayed run rate, Geithner needs to issue $350 billion in debt right now just to catch up with where bond issuance should be). And then again until the general public gets so tired of this charade that they vote Obama out. Or so the republicans think. Or who the hell knows what they think. Or anyone else for that matter. It does appear however, that unless there is a definitive and consensual proposal on the table by 4 pm tomorrow when FX opens, the market will no longer be able to ignore what is happening in DC. Which brings us to the best news of the day: this whole farcical spectacle is almost over.

From The Hill:

Boehner told House Republicans earlier in the day that he wanted to present a plan by Sunday afternoon to avoid rattling the Asian markets.

Aides have said the Speaker continues to insist that the size of spending cuts exceed the size of any increase in the debt limit, meaning that lawmakers would need to agree on more than $2.4 trillion in cuts to extend federal borrowing beyond 2012.

Pelosi said the leaders are looking at a two-tiered approach, which would likely combine immediate spending cuts while creating a process for Congress to enact entitlement and tax reforms over the next several months. She hinted, however, that the revenue would come in the second “tier” of the process.

“One option is to do something in two tiers, and I don’t think we can accomplish what we need to do in deficit reduction without revenues,” Pelosi said.

Asked if the revenues would come in the second tier, she replied: “It would have to be if we are going to go into … what we need to do is to greatly reduce the deficit. But it is not over yet.”

Pelosi said congressional leaders are still working but that no further meetings were scheduled as of Saturday night.

Elsewhere, in a desperate attempt to prolong the drama, Harry Reid said that he was "deeply disappointed" in debt
talks with Republicans, saying a lack of progress was bringing the
United States closer to default.

From Reuters:

Reid issued the statement following a meeting of congressional leaders. Reid insisted that a deficit reduction deal should also raise U.S. borrowing authority through 2012 so that the U.S. credit rating would not be downgraded.

To be honest, we have had enough with ridiculous diversions. Just pass the damn "deal" already so that we can all resume observing the global economy collapse in on itself first slowly, and then very very fast.

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Arius's picture

definetely bullish!

guaranteed more soap opera ... thank God!

brew's picture

since "all my children" got cancelled gotta have something to watch...

Arius's picture

yeap... i was thinking of american idol .... bread and circus all over again...

hedgeless_horseman's picture

Just like porn.  Everyone gets fucked in the end.

Arius's picture

the happy ending ... i guess ... or should i say i hope ....

Cheesy Bastard's picture

Lol.  The happy ending, otherwise known as the money shot.

falak pema's picture

Don't groan when you can sigh! Its more in line with enjoying inevitable rape.

redpill's picture

Well, his name is Boner afterall.  Since when did he give a shit about rattling Asian markets, and when did that become a priority for the timeline upon which we enact legislation that would impact entire generations of future Americans/Chinese Indentured Servants?

 

Bob's picture

Mr. Market has been installed as our new Dictator, with the elected officials merely executives catering to his needs.  Obama warned on Friday that "Wall Street will be watching on Monday," so Boner one-upped him with "the Asian markets on Sunday" bullshit. 

When are people going to confront this new face of the coup by the financial industry? 

Mr. Market has become Big Brother. 

jesus_quintana's picture

Middle Eastern markets already open. Won't somebody think of the poor Arabs?

Mariposa de Oro's picture

Just like porn.  Everyone gets fucked in the end

ROTFLMAO!!!  I'm using that!

:-)

 

Threeggg's picture

Watching it right now on Nick@nite

Still as funny as it was way back !!

Oh it's married with children.

HungrySeagull's picture

Oh shit.

 

QE 3 for sure and despite the Nausea in my tummy I better grow a pair and get ready to trade.

lizzy36's picture

The problem is w/o timmy issuing debt, what the hell is ben going to monetize?

sasebo's picture

MBS. AAA of course. Yeah, right. Toilet paper.

cranky-old-geezer's picture

The problem is w/o timmy issuing debt, what the hell is ben going to monetize?

All kinds of stuff, but (worthless) secirities from Wall Street banks mostly.

Bernokio can keep TARP going forever, buying up all kinds of worthless paper ...at full mark-to-myth value of course.

Debt ceiling merely stops Bernokio monetizing more treasury debt. He can keep printing and buying all kinds of other (worthless trash) paper out there.

I fully expect seeing Fed's balance sheet baloon to $100 trillion ...then $200 trillion ...and keep going.

TruthInSunshine's picture

Ben monetized Red Roof Inn, that fantastic chain of well run motels, last go around, as just one example of his flexibility, so I imagine he's already got a good, solid plan together, Lizzy.

InvalidID's picture

I'm long bullshit, been making a killing!

Captain Planet's picture

and you get great fertilizer, without paying/selling your soul to monsanto

sabra1's picture

at least now, they can replace the pensions they stole!

OT:

Ireland Trying To Hide A Bank Default?
gangland's picture

 

bhahahaha of course! icant wait till ski season.

 

buzzsaw99's picture

Basking in it, reveling in it, positively buried in the part. Lights, camera, action!

Global Hunter's picture

 "Just pass the damn "deal" already so that we can all resume observing the global economy collapse in on itself first slowly, and then very very fast".

I keep re-reading this and chuckling.

FunkyMonkeyBoy's picture

So, at what time do the rating agencies' announce a downgrade of this self-centered, parasitic piece of s**t that is known at the good ol' US of A?

Atomizer's picture

Thank you Nancy.. Listen to how double talk works.

Pelosi Unemployment

http://www.youtube.com/watch?v=WUAG3Fqz56s

A Nanny Moose's picture

Leave poor Nancy "We gotta pass it to find out what's in it" Pelosi alone. Somebody dropped a house on her sister.

lolmao500's picture

Boehner should tell Obama and the democrats they have to pass the debt ceiling bill to know what's in it... during a press conference. It would be epic.

brew's picture

lets commission another commission...

Rodent Freikorps's picture

...and then ignore their recommendations.

francis_sawyer's picture

yeah... Howz about a 'debt ceiling raising' czar...

cranky-old-geezer's picture

I just drpped in to see what condition my commission is in.

Yea ... yea ... ohhhhhhhhhhh yeeeeeeeeeaaaaaaa ....

Samual Adams's picture

 

"Boehner should tell Obama and the democrats they have to pass the debt ceiling bill to know what's in it... during a press conference. It would be epic."

Pure Brilliance!    That would go Viral in a heartbeat/Flash Crash.   I wonder if anyone has found out which is faster?

Husk-Erzulie's picture

Somebody dropped a house on her sister.

Ha, never heard that one before....usin' it :-)

JLee2027's picture

Can you believe anything Pelosi or an un-named aide claim?

I can't. Just the NY Times story 3 days ago that a deal was being struck. Or the Wash Post story about progress this past week. Both false. I'll wait for Boehner to announce something.

baby_BLYTHE's picture

we have to pass the bill so you can find out what is in it

No, pretty sure these people are certifiably insane

nmewn's picture

She is criminally insane.

Reporter: “Madam Speaker, where specifically does the Constitution grant Congress the authority to enact an individual health insurance mandate?”

Pelosi: “Are you serious? Are you serious?”

nmewn's picture

Well, its not a crime for her to return to her corner and rock back & forth while babbling to herself...its just distracting ;-)

I am Jobe's picture

F the bitch is still in Congress. Send her to Palestine will ya. Get this opera over with . F I am tired and have to continue drinking.

RobotTrader's picture

Looks like yet another crisis was averted.

Same old games, kick it down the road for a few more miles.

sasebo's picture

Are you sure? USA still bankrupt. Kick their dumb asses down the road. Still borrowing 40% of what we spend. Nothing has changed & won't till dollar collapses, hopefully soon. DXY down 7% since Jan. even with all those reserves.

Ying-Yang's picture

Nope Robot Trader... game changer is just beginning. Buckle up for what's coming. It will blow your mind and your trades.

Spastica Rex's picture

Looks like you're still boring.

Same old comment.

nmewn's picture

Oh yes...no circus would be complete without the clown Pelosi.