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

Tyler Durden's picture

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.

 

 

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

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WhiteNight123129's picture

I don t pay attention to Argentina s politics either.

 

Whoa Dammit's picture

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

SheepDog-One's picture

Deal! 

NO Deal!

Deal! 

NO DEAL! 

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

foxmuldar's picture

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?

HardlyZero's picture

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

SmoothCoolSmoke's picture

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

Zer0head's picture

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

HardlyZero's picture

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

 

 

disabledvet's picture

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.

One World Mafia's picture

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...

robertocarlos's picture

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

dwdollar's picture

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

buzzsaw99's picture

(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]

DavidC's picture

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

HardlyZero's picture

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.

foxmuldar's picture

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.

GMadScientist's picture

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

10044's picture

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

know-zilch's picture

so WTF is a cliff?

 

Dollar Bill Hiccup's picture

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

 

Dollar Bill Hiccup's picture

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.

Zer0head's picture

but then again...

3m

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

ekm's picture

Marketwatch just headlined that Cantor is against the bill.

10044's picture

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

lizzy36's picture

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!

ekm's picture

LOL  Hilarious.

Happy new year to you.

Racer's picture

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

 

ekm's picture

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

optimator's picture

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

ForTheWorld's picture

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

Everybodys All American's picture

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.

Joe moneybags's picture

An a Preposterous New Year to you, optimator.

foxmuldar's picture

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

gould's fisker's picture

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

BraveSirRobin's picture

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.

Jugdish's picture

Missed. The intent is to screw your sorry ass. I'm drunker. Pay your taxes and shut the fuck up. THe "more seats" shit is for imbeciles.

JLee2027's picture

Mitch "the Owl" McConnell caved again. What a surprise.

TheMayor's picture

I am ready to donate to DEFEAT ANYONE that votes for this POS!

 

Iam Yue2's picture

Eur/usd no change.

ekm's picture

Scroll down to see my comment on that

falak pema's picture

what the dems screw up the repubs can screw up to PI squared. This is the race to bottom of senate/house cain vs abel infighting. 

AEP of The Telegraph feels that the WS asset market is going to hit a triple home run in 2013. 

I hope he is watching the same movie as us in real time. 

There is something is this political squabble which is beyond my savvy. 

StoleYourMoney's picture

The market cant be wrong futures exploded 250 pts!

Legolas's picture

This news has not been entered in to the system yet, so the algos are oblivious to it.  It is New Years Day afterall.

Wouldn't it be great if they started feeding the algos only Unicorn & Skittles type of data?  OOooohhh, maybe they are !

chump666's picture

The markets will break in 2013