|Boehner, Obama and Reid (Whitehouse.gov)|
"If an agreement is reached to raise the debt ceiling but nothing meaningful is done in terms of deficit reduction, the U.S. would likely have its rating cut to the AA category, S&P said." (Reuters)
"The U.S. government may lose its AAA credit rating even if lawmakers reach a plan to avoid a default, said Mohamed A. El-Erian, whose Pacific Investment Management Co. is the world’s largest manager of bond funds." (Bloomberg)
Monday July 25, 2011
*Harry Reid's plan vs. John Boehner's "Cut, Cap & Balance" plan (Bloomberg)
"Boehner’s two-step plan would raise the U.S. borrowing limit by up to $1 trillion, with larger spending cuts, and require a new vote on more reductions before an additional $1.6 trillion debt-limit increase next year. It could be voted on in the House within two days. Obama and Senate Democrats oppose a short-term extension, which could lead to another debt standoff next year.
By contrast, Reid’s proposal would cut $2.7 trillion in spending and give Obama the full $2.4 trillion in additional borrowing authority he seeks, enough to get through the 2012 elections."
Speaker Boehner's response to Obama's address (CSPAN.org, 7/25/2011)
President Obama's statement to the nation on the debt limit (CSPAN.org, 7/25/2011)
House Speaker John Boehner's news conference (CSPAN.org, 7/25/2011)
Senator Harry Reid's news conference (CSPAN.org, 7/25/2011)
No endgame in sight as debt default looms (Reuters)