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Reid Tries To Spike The Hopium Bowl But Obama Talks Down Optimism

Tyler Durden's picture




 

Senator Harry Reid has a cunning new plan and says "we're getting closer," providing yet more hope that the US won't tip inauspiciously over the edge of the economic abyss. The latest rumored deal proposal, to be presented at the White House meeting at 3pm, includes automatic spending cuts, a framework for budget negotiations, extends the debt ceiling for 6-9 months, and funds the government through December at current sequester levels.

Doing so, as AP reports, would punt the fight over whether to lock in 2014 sequestration levels at $967 billion until December. And by extending the debt ceiling until the middle of next year, it would put the issue in the center of the heated 2014 midterm elections.

While this provided some short-term optimism, Obama was quick to remind the market that "it appears that has been some progress in the Senate in fiscal impasse negotiations and will see if it is real when he meets congressional leaders."

 

Market rips on...

  • *SENATOR REID SAYS `WE'RE GETTING CLOSER' TO AGREEMENTS: AP

Then stalls on...

  • *OBAMA SAYS REPUBLICANS RECOGNIZING DEFAULT IS NOT SMART
  • *OBAMA SAYS AFTERNOON MEETING WILL SHOW EXTENT OF PROGRESS
  • *OBAMA SAYS REPUBLICANS MUST SET ASIDE SOME PARTISAN CONCERNS
     

 

Via AP,

Senate Majority Leader Harry Reid has privately offered Senate Minority Leader Mitch McConnell a deal that would reopen the government until mid-to-late December while extending the U.S. debt ceiling until next year, according to several sources familiar with the talks.  

 

The proposal would set up a framework for larger budget negotiations with the House over the automatic sequestration spending cuts and and other major deficit issues, the sources said. Moreover, Senate Democrats are open to delaying Obamacare’s medical device tax and a requirement that those receiving Obamacare subsidies be subject to income verification — but they would have to get something from Republicans in return, sources said.  

 

McConnell is still reviewing the offer and is privately huddling with groups of GOP senators Monday who could be key to providing enough votes in the Senate. On Monday morning, McConnell met with Sens. John McCain of Arizona, Susan Collins of Maine, Lisa Murkowski of Alaska, Mike Johanns of Nebraska and Mark Kirk of Illinois.   After leaving the meeting with McConnell, McCain said he would be “surprised” if a deal were struck on Monday but said the leaders are deep in the specifics.  

 

Under Reid’s proposal, the debt ceiling would be extended for 6-9 months, and the government would be funded at $986 billion until some point in December. Doing so would punt the fight over whether to lock in 2014 sequestration levels at $967 billion until December. And by extending the debt ceiling until the middle of next year, it would put the issue in the center of the heated 2014 midterm elections.

Via Politico,

Senate Majority Leader Harry Reid has privately offered Senate Minority Leader Mitch McConnell a deal that would reopen the government until mid-to-late December while extending the U.S. debt ceiling until next year, according to several sources familiar with the talks.The proposal would set up a framework for larger budget negotiations with the House over the automatic sequestration spending cuts and other major deficit issues, the sources said.

 

Moreover, Senate Democrats are open to delaying Obamacare’s medical device tax and a requirement that those receiving Obamacare subsidies be subject to income verification — but they would have to get something from Republicans in return, sources said.

 

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Mon, 10/14/2013 - 12:49 | 4052895 ciscokid
ciscokid's picture

Bulls.........

Mon, 10/14/2013 - 13:00 | 4052937 Keyser
Keyser's picture

-----Shit----

Mon, 10/14/2013 - 13:07 | 4052957 xtop23
xtop23's picture

......automatic spending cuts..... TO PROJECTED INCREASES YOU TWATS !!!

sigh.

Mon, 10/14/2013 - 13:08 | 4052962 SWRichmond
SWRichmond's picture

Hmmmm...Senate and WH setting budget priorities.  How quaint.

Mon, 10/14/2013 - 13:16 | 4052988 DoChenRollingBearing
DoChenRollingBearing's picture

 

 

The problem is too much spending.

The answer is:

No Deal!

Mon, 10/14/2013 - 16:46 | 4053921 Keyser
Keyser's picture

So instead of a reduced spending deal, they get NO SPENDING. Sometimes liberals don't make much sense. 

 

Mon, 10/14/2013 - 13:38 | 4053074 CrashisOptimistic
CrashisOptimistic's picture

 

True, but the details matter.

The Sequester is laid out to reduce the baseline, and that's powerful stuff.

In FY2014 the cap is $969 Billion for the discretionary plus DoD.  It by no means is total spending.  Soc Sec, Medicare, Federal pensions and Interest are all not in that.

The FY2015 caps are still lower at a number I do not recall.  But then from 2016 onward the cap rises at about 2.5%/yr.  This is not absurd or non conservative.  Population grows, inflation happens.  Spending must rise.  There are more airplanes in the sky than in 1960 so the FAA has to have more money.

Just be aware that 2.5% is far below the rate of increase that used to exist.  Back in Reagan's day the Democrats sneered at the concept that we would "grow our way out of these deficits".  GDP growth was to elevate tax revs and pay for it all. 

Now, the Dems are embracing the same silliness.  "Economic growth will be stronger next year and cut the deficit".

The deficit is down a lousy 150-200B only because of the Sequester and the massive millionaire tax from January.  Growth didn't do that.  That 850 will be north of 1 T again in no time if they bust the Sequester.

 

Mon, 10/14/2013 - 13:52 | 4053110 knightowl77
knightowl77's picture

How about a fckn freeze - no increase at ALL

How about we get rid of all the non-essential folks...Like the 93% of employees at the EPA? How about we eliminate the Income tax, then have a national sales tax we and we can close the IRS too...and the Dept of Energy, and the Dept of Ed

How about we return the National Parks and Forests back to the control of the states to run without Fed interference How about closing about 60% (or more) of our oversea military bases....

How about a Balanced Budget Amendment....

Mon, 10/14/2013 - 13:54 | 4053116 CrashisOptimistic
CrashisOptimistic's picture

How about you find the votes for all that. 

 

Mon, 10/14/2013 - 16:49 | 4053927 Keyser
Keyser's picture

Since when did votes matter anyway? Politicians say anything they can to get elected, then recant at the first opportunity once in office. 

Mon, 10/14/2013 - 12:52 | 4052900 Shizzmoney
Shizzmoney's picture

QE4EVA > Can Kicking 4 EVA

Mon, 10/14/2013 - 12:52 | 4052901 thismarketisrigged
thismarketisrigged's picture

what a coincidence.

 

thursday and friday, everything was going great.

 

friday at 4:01 pm and the rest of the day, saturday, and during the day sunday, things had gotten worse, talks had broken down, etc,

 

today- we r getting much closer to a deal, etc.

 

this shit is so fucking laughable, i dont know what else to do at this point

Mon, 10/14/2013 - 12:56 | 4052921 Tsar Pointless
Tsar Pointless's picture

Laugh. It's okay. It's the only sane, rational thing to do any more.

Your synopsis of the timeline of events is all one needs to know regarding our latest drama in D.C. A hearty +1 to you, sir.

Mon, 10/14/2013 - 12:58 | 4052928 max2205
max2205's picture

Slow day in DC since nobody has been shot or burned to death

Mon, 10/14/2013 - 13:34 | 4053057 asteroids
asteroids's picture

Have some faith eh. Wait a bit, it's still early.

Mon, 10/14/2013 - 13:01 | 4052942 LawsofPhysics
LawsofPhysics's picture

No conspiracy theory please, it's much simpler.  Western states are realizing just how useless D.C. and the eastern states are.  They will do their own thing soon enough.  They have the natural resources and plenty of investment coming in.  Gee, look, they are re-opening those national parks and collecting state income tax again without having to pay useless federal employees, win-win.  If you don't think folks in Utah will protect their way of life, to the death, I suggest you read up on Mormon history.

Mon, 10/14/2013 - 13:09 | 4052968 moonman
moonman's picture

Isn't California in the West?

 

Just checking

Mon, 10/14/2013 - 13:15 | 4052991 LawsofPhysics
LawsofPhysics's picture

California has resources and an economy bigger than most european countries, but I often wonder how they will do when the rocky mountain states shut the water off.

Go long property in Northern California, cause all those wetbacks in L.A. will move in a hurry.

Mon, 10/14/2013 - 13:25 | 4053017 El Vaquero
El Vaquero's picture

It also has a lot of Californians who love government solutions to just about everything.  I have several cousins out there who want out, but cannot afford to move right now. 

Mon, 10/14/2013 - 13:10 | 4052973 centerline
centerline's picture

A couple hundred miles from coast lines or great lakes barring pockets of stupidity.  Not entirely and east-west thing.  Just my 2 cents.

Mon, 10/14/2013 - 13:13 | 4052976 SWRichmond
SWRichmond's picture

No one would blame them if they "moved on", and Obama would go down in history as the second American president whose election caused the breakup of the US.  Has Obama fired enough generals yet to ensure the remaining ones will do what he wants, i.e. invade?

Mon, 10/14/2013 - 12:52 | 4052902 Haager
Haager's picture

No wonder it will be rejected - automatic spending cuts, big ROFL.

 

And that news was already known at market open, so why didn't anyone adjusted the algo's? The only thing needed to bring both parties to really talk together is a full grlown crash.

Mon, 10/14/2013 - 12:53 | 4052904 jughead
jughead's picture

If there's one thing these creeps are good at, it's playing kick the can. 

Mon, 10/14/2013 - 12:55 | 4052913 Tsar Pointless
Tsar Pointless's picture

No deal until the equity markets are blood red - deep blood red.

Until then, BTFATH, bitchez.

Mon, 10/14/2013 - 12:57 | 4052917 El Vaquero
El Vaquero's picture

Congress, Obama, bankers, they're all a bunch of pedophiles, given that they're not just fucking adults with their insanity, but everybody's kids too.  Harry Reid and Lindsey Graham even look the part. 

Mon, 10/14/2013 - 13:05 | 4052946 Keyser
Keyser's picture

You left out Senator Menendez, the one true pedo in the group. 

 

Mon, 10/14/2013 - 13:16 | 4052997 El Vaquero
El Vaquero's picture

Fair enough.  He is one creepy looking fuck.  And he's from New Jersey. 

Mon, 10/14/2013 - 12:56 | 4052919 Yen Cross
Yen Cross's picture

If the republicans cave in they can kiss their asses goodbye in the midterms. The dems will do.anything they can for free shit army votes.

Mon, 10/14/2013 - 13:00 | 4052925 Dr. Engali
Dr. Engali's picture

The republicunts are toast no matter what. They killed that party years ago. We are just witnessing it's death throes.

Mon, 10/14/2013 - 12:58 | 4052929 Bay of Pigs
Bay of Pigs's picture

Come on Boner and you GOP hacks. Time to fold like the cheap empty suits you are.

Mon, 10/14/2013 - 13:01 | 4052933 Devotional
Devotional's picture

Remember what Goldman Shats said - "Gold is a slamdunk sell" on a deal.

Remember what you are to do when the deal happens - Stack on the real physical.

Mon, 10/14/2013 - 13:00 | 4052935 Vagabond
Vagabond's picture

This soap opera sucks.  It's time to change the channel.

Mon, 10/14/2013 - 13:03 | 4052943 Dr. Engali
Dr. Engali's picture

All I can say is : what government shut down?

Mon, 10/14/2013 - 13:08 | 4052964 El Vaquero
El Vaquero's picture

No shit.  I have a national monument near my house.  What do you bet I'd get stopped by some thug with a badge and a gun if I tried to go in?  Yet, when I was a kid, I'd go to the same place before it was a national monument and shoot rabbits.

Mon, 10/14/2013 - 13:18 | 4053000 Pure Evil
Pure Evil's picture

You're not speaking poorly of Officer Un-friendly are you?

Mon, 10/14/2013 - 13:30 | 4053035 El Vaquero
El Vaquero's picture

Me?  I would never do such a thing!  Those troglodites who enforce the law really aren't that bad, once you get past them giving you arbitrary and subjective orders, beating you, tazing you and shooting you. 

Mon, 10/14/2013 - 13:09 | 4052969 nmewn
nmewn's picture

No shit.

Just got back from lunch with young squire.

The small town restaurant was doing a fine business. Except there was a group of Fish & Wildlife schmoes in there, complainiing about their bill.

Seems they're accustomed to getting their Cokes & sweet tea for free. You see its not enough the taxpayer pays them to act like mini-me Rambo's running through OUR forests...they expect handouts from local businesses in town too.

Mon, 10/14/2013 - 13:03 | 4052944 Pure Evil
Pure Evil's picture

Its nice to see that Republican and Democratic US Senators are conspiring to turn over full power to the usurper currently residing in White House.

What next, the Senate votes to give Flaming O'homo the title of Imperial Majesty for Life?

Mon, 10/14/2013 - 13:07 | 4052951 Keyser
Keyser's picture

No, just rubbing their greedy little mitts together trying to figure out the next way to tax the shit out of the American people. As if the ACA wasn't enough. 

 

Mon, 10/14/2013 - 13:05 | 4052945 nmewn
nmewn's picture

Reid & Obama...willing to "negotiate" with "anarchists" and terrsts now? Why, whatever could have gone wrong with Plan A?

No, bite me.

The People get the same deal as corporations, thats what makes law "fair" right?...the ObamaCare Individual Mandate goes or no deal.

Mon, 10/14/2013 - 13:07 | 4052949 bearish1
bearish1's picture

SO. SICK. OF. THEM.

Mon, 10/14/2013 - 13:09 | 4052956 NoWayJose
NoWayJose's picture

Yet another Republican cave. It's basically the clean CR and debt limit change Obama wanted in exchange for some unspecified 'cuts' that will likely turn out to be only smaller spending increases than originally planned - plus a vague promise to negotiate a budget sometime in the future. The 'meat' for Republicans is to delay the Obamacare penalty and the medical device check - and those are not included! Boehner better squash this plan and get those two things included.

Mon, 10/14/2013 - 13:09 | 4052959 thismarketisrigged
thismarketisrigged's picture

if no agreement is reached by end of today, the dow futures will be down 50 pts tomm.

 

better get a deal washington, wall st will not take no for an answer, just look at todays massive sell off.

Mon, 10/14/2013 - 13:08 | 4052963 grunk
grunk's picture

I thought the next sequester cuts were automatic.

Why is that issue on the table for Republicans?

Mon, 10/14/2013 - 13:20 | 4052995 Pure Evil
Pure Evil's picture

The only thing automatic in D.C. are pay raises for politicians, bribe money from K-Street lobbyists, and exemptions from the laws they pass for the idiocracy.

Mon, 10/14/2013 - 13:14 | 4052983 Atlantis Consigliore
Atlantis Consigliore's picture

Republikickdacans....cmon Boner fold like the French Eurotrash you are,  keep on Printing, we got Yellen in January,   yipeeee. 

Mon, 10/14/2013 - 13:17 | 4052986 kralizec
kralizec's picture

The repetitive bullshit is nauseating!

"Obama says..."

I feel my Tourette's kicking in again...

Mon, 10/14/2013 - 13:24 | 4053014 Kirk2NCC1701
Kirk2NCC1701's picture

I'll take a different tack and boldly go where few dare to go:  The 2014 Mid-Term Elections...

Everything that Obama is doing seems to favor a good outcome for 2014:  (1) Thanks to the MSM, the public will be blaming the GOP more than the Dems for the Budget and Debt Ceiling drama, which will result in (2) the Dems get both houses of Congress. 

After that... Lookout!  First Gun Controls... and then the Vampire Squids go on feeding frenzy, after they first crash the markets.  Probably a major War too, to avoid the USD losing its Reserve status.

Obama is playing hardball, Hold 'em Poker.  Not sure what the GOP side is "playing with".

Mon, 10/14/2013 - 13:43 | 4053093 robnume
robnume's picture

"How do you know when a politician is lying? Their lips are moving". THE END!!

Mon, 10/14/2013 - 13:44 | 4053095 Fix It Again Timmy
Fix It Again Timmy's picture

I once had a productive job, then I became a politician...

Mon, 10/14/2013 - 14:15 | 4053166 csmith
csmith's picture

Senate Democrats are open to...a requirement that those receiving Obamacare subsidies be subject to income verification.

 

And just how do they propose to "verify" people's incomes when they can't even get the ACA website to identify people properly? Let's get step one right before we move to step ten...

Mon, 10/14/2013 - 15:32 | 4053601 orangegeek
orangegeek's picture

hopium bowl?

 

Block that field goal, block that punt.

 

Kick Pelosi in the ......CAWWWWWWN - GRESSSSSSS!!!!

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