Citi's Worst Case Scenario Coming True: House To Amend Bill, Send Back To Senate

Submitted by Tyler Durden on 01/01/2013 15:58 -0400

UPDATE: *LATOURETTE SAYS CANTOR WON'T SUPPORT BILL `IN CURRENT FORM'

It seems all is not going according to plan in D.C.. Perhaps it was the $4 Trillion deficit rampage the CBO just scored, or that the Republicans awoke from their slumber but as House meetings end, it appears Citi's worst case scenario is about to take place - the bill is going back to the Senate with spending cut amendments. As Politico notes, amending the bill would throw into serious flux the carefully negotiated agreement between Senate Minority leader Mitch McConnell and Vice President Joe Biden. While headlines noted the possibility, Rep Spencer Baucus (via Robert Costa) just confirmed the deal will "go back to the Senate."

*BACHUS SAYS HOUSE REPUBLICANS 'THERE' ON TAX PROVISIONS
*BACHUS SAYS HOUSE MAY SEND BILL BACK WITH SPENDING CUTS ADDED

One thing is clear, Politico adds: there is serious disdain among House Republicans for what the Senate did in the middle of the night. Retiring Rep. Steve LaTourette of Ohio asked House Republicans why the House would “heed the votes of sleep deprived octogenarians,” according to a source in the meeting.

Breaking: Leaving mtg, Rep. Spencer Bachus says deal will "go back to the Senate."

— Robert Costa (@robertcostaNRO) January 1, 2013

What is limit down in S&P 500 futures again?

Average:

Your rating: None Average: 4.5 (13 votes)

- advertisements -

Similar Articles You Might Enjoy:

Tue, 01/01/2013 - 16:20 | 3112685 WhiteNight123129

I don t pay attention to Argentina s politics either.

Tue, 01/01/2013 - 16:22 | 3112691 Whoa Dammit

This political maneuvering wherein nothing is actually accomplished (other than rumor floating) is all Greek to me.

Tue, 01/01/2013 - 16:24 | 3112693 SheepDog-One

Deal!

NO Deal!

Deal!

NO DEAL!

Baffle em with bullshit on steroids and crystal meth....pointless bullshit! HEY WE KNOW YER ALL SCUMBAGS!!

Tue, 01/01/2013 - 16:23 | 3112694 foxmuldar

I hope there's enough sane members in the House to stick it to Boehner and vote this piece of crap down. Show me the cuts now then we can talk about tax increases and welfare benefits. Are we trying to save America or the stock market?

Tue, 01/01/2013 - 16:29 | 3112711 HardlyZero

There have been a few switch and baits over the years...especially w.r.t. taxes (now) and cuts (later). Show me the cuts !

Tue, 01/01/2013 - 16:25 | 3112698 SmoothCoolSmoke

Looks like someone in the House bought some SPY puts btwn 4 and 4:15 Monday.

Tue, 01/01/2013 - 16:35 | 3112726 Zer0head

that is what this is all about

and they will be buying calls at the open tomorrow (the congressional insiders are making tens of millions daily and tomorrow will be a blue ribbon day them)

if one does the math Boner + his 100 fellow Boners + the BoneHead Dems = passing the Senate Bill

Tue, 01/01/2013 - 16:26 | 3112699 ISEEIT

BINGO!

Tue, 01/01/2013 - 16:28 | 3112705 HardlyZero

The great unravelling begins...lets open our 2013 New Year gift. http://www.dailymotion.com/video/x1oipi_johnny-cash-ring-of-fire-1969_music

Tue, 01/01/2013 - 16:28 | 3112706 disabledvet

so all SPENDING bills still originate in the House...the Senate didn't have a problem with that prerogative. And the House "has returned the favor." All righty then! I mean i'm supposed to celebrate lower spending with my tax increase? Gee...thanks Republicans! "And we'll throw in higher eligibility for Social Security and Medicare cuz we love you too working guy!" I fail to see why the Senate would have a problem with that one actually. Imagine for a moment if you were anyone BUT an American right now. That would mean...noooo, you can't monetize that. AT ALL. Then these clowns would know what REAL austerity feels like. In fact ALL Americans would. As in "30% inflation, 12% interest rates, beholden to IMF Overlords, the Rockefellers and Studebakers telling YOU what to do" etc, etc. Hate to say we "got it easy"...but guess what folks..."we got it easy." We're just stupid to ourselves.

Tue, 01/01/2013 - 16:30 | 3112712 One World Mafia

Fiscal Cliff Deal: $1 in Spending Cuts for Every $41 in Tax Increases

http://www.infowars.com/fiscal-cliff-deal-1-in-spending-cuts-for-every-4...

Tue, 01/01/2013 - 16:38 | 3112739 robertocarlos

Should be $123 in spending cuts for every $41 in tax increases. Rockin' Ronnie approved my post.

Tue, 01/01/2013 - 16:32 | 3112716 dwdollar

As far as I'm concerned, CONgress can argue about this for eternity. It would keep them from destroying anything left of the Constitution.

Tue, 01/01/2013 - 16:35 | 3112730 buzzsaw99

(Peter) Reid: What if we're still doing this when we're eighty?

(Samir) Pelosi: It would be nice to have that kind of job security.

[/office space]

Tue, 01/01/2013 - 16:48 | 3112762 DavidC

Great film. And we had Idiocracy on here in the UK the other night - I wasn't sure if I was watching real time TV!

DavidC

Tue, 01/01/2013 - 16:36 | 3112735 HardlyZero

This works its way into the $1T taxes for the new healthcare for 2013. Now when healthcare causes a massive re-org of medicine, and co-collapse of the US stock market, no one will be able to tell which caused which...the $1T in new medical taxes or the $300B in new income and cap gains taxes.

Cuts might happen...later. Its in the mail.

Dismal.

Tue, 01/01/2013 - 16:44 | 3112756 Tijuana Donkey Show

So, does this mean I get my Rascal finally? http://www.youtube.com/watch?v=tIAB3Ef6DfQ

Tue, 01/01/2013 - 16:40 | 3112738 foxmuldar

I want to see $41 in spending cuts for every $1,00 in new spending. Isn't it time to pay some real hard ball? Even if we don't go over the cliff our taxes are going up. And what abour Bachmanns bills to cancel the pay raises? Even Biden gets a pay hike. What a racket they have going. Doesn't matter if the governments broke, They still get their raise.Where is that rope.

Tue, 01/01/2013 - 19:32 | 3113129 GMadScientist

Nobody gives a shit what Bachmann thinks, not even the people on the Kibbutz.

Tue, 01/01/2013 - 16:38 | 3112741 10044

who's been trading gold and why is it showing up $18 on kitco? (not that I'm complaining)

Tue, 01/01/2013 - 16:40 | 3112745 know-zilch

so WTF is a cliff?

Tue, 01/01/2013 - 16:53 | 3112752 LouisDega

This is a Cliff.

http://upload.wikimedia.org/wikipedia/en/5/51/Cliff1965pose.jpg

Tue, 01/01/2013 - 16:45 | 3112757 Dollar Bill Hiccup

This sums it up pretty well. It's not just one event, but a series of blunders with a certain inevitable finish.

http://www.youtube.com/watch?v=hz65AOjabtM

Tue, 01/01/2013 - 16:42 | 3112751 Dollar Bill Hiccup

Mc and Bido must certainly have put a high degree of probability on the House sending back to Senate with amendments. That's why these two guys were left in charge of the deal. Maybe 100% probability. The theatre was for the public and of course, the ALGOs.

Now ball is back in Reid's court. He can fail the bill and be left holding the RECESSION bag, or he can pass it and face the wrath of his left wing (nuts). There's no way Harry is going to screw the 99%, he can't get re-elected that way.

He's going to pass it with amendments. How many times the amendments get amended in the next 3 days is anyone's guess.

Tue, 01/01/2013 - 16:44 | 3112753 Zer0head

but then again...

3m ‏@robertcostaNRO

So regardless of the different takes on Cantor/Boehner, if Cantor is opposed to this deal, short story is: McConnell-Biden (nearly) DOA.

Tue, 01/01/2013 - 16:49 | 3112768 ekm

Marketwatch just headlined that Cantor is against the bill.

Tue, 01/01/2013 - 16:56 | 3112776 10044

who gives a sht? didn't the fed say they're printing 85b a month? what am I missing here please?

Tue, 01/01/2013 - 16:59 | 3112780 lizzy36

In about 45 hours the current Congress expires. If they don't take up bill before then it dies.

Also moron muppet politicians talking about getting something done b/f Asia opens are really worse than retarded. Japan and China are closed until Friday (January 4, 2013)

Happy New Year to all Zerohedgers!

Tue, 01/01/2013 - 17:04 | 3112791 ekm

LOL Hilarious.

Happy new year to you.

Tue, 01/01/2013 - 17:06 | 3112794 Racer

Er, they don't know any country apart from the US actually exists do they?

Tue, 01/01/2013 - 17:22 | 3112823 Tenshin Headache

New Zealand? Australia?

Tue, 01/01/2013 - 17:26 | 3112831 ekm

Also, Vanuatu, north pole, south pole and british virgin islands

Tue, 01/01/2013 - 17:57 | 3112908 Clowns on Acid

hilarious ekm !

Tue, 01/01/2013 - 17:02 | 3112785 optimator

Down arrow me all you want, but reduce give away's and real spending. and cut off illegals from any money or employment. And

bring back the draft.

And to all older ZHers, HAPPY NEW HAIR

Tue, 01/01/2013 - 18:26 | 3112975 ForTheWorld

I'll agree with everything you've said, except bringing back the draft. Young men don't need to fight old mens wars.

Tue, 01/01/2013 - 18:29 | 3112984 Everybodys All ...

You can damn well bet that the draft would end the war(s) we are in very quickly. How can anyone from the left or right claim we are safer with these endless wars. Peace through strength, speak softly and carry a big stick has turned into this nonsense. Btw I'm all for a strong military but if we can't pay for them without borrowing we are finished as a nation.

Tue, 01/01/2013 - 20:44 | 3113273 Joe moneybags

An a Preposterous New Year to you, optimator.

Tue, 01/01/2013 - 17:02 | 3112787 foxmuldar

A bit of humor while were waiting to take the jump.

She Doesn't Go To Public School

I was eating breakfast with my 10-year-old Granddaughter and I asked her,

"What day is tomorrow?"; She said "It 's President 's Day!"

She is a smart kid. I asked "What does President 's Day mean?" I was waiting for
something about Washington or Lincoln ....etc.

She replied, "President 's Day is when President Obama steps out of the White
House, and if he sees his shadow, we have 4 more years of BullShit."

You know, It hurts when hot coffee spurts out your nose!

Happy New Year

Tue, 01/01/2013 - 17:07 | 3112796 gould's fisker

Don't overthink the congressional "strategy"--these morons are just happy that anybody is paying attention and they can bloviate on c-span on new year's day. Tonight they'll think they have actually done something, no matter the outcome

Tue, 01/01/2013 - 17:09 | 3112799 BraveSirRobin

Boner did not say he would "pass" the bill, but rather he would bring it to vate.

The point of the exercise was to get the Democrats to get a proposal officially on paper. Something they were desparately trying to avoid. This is now the best the Democrats will get. Now the Republicans will try and add spending cuts. If they do not get them, they can claim all the Democrats are proposing is a tax and spend plan that throws us deeper in debt. It puts them in a bad light, which is what this exercise is all about (each side trying to embarrass the other).

The intent is not to promote prosperity, but to add seats in each chamber of congress.

Wed, 01/02/2013 - 02:01 | 3114149 Jugdish