Ticking Clock

Obama Open to Short-Term Debt Deal

Mark Lennihan / AP Photo,Mark Lennihan

President Obama says he's open to a short-term debt deal—“a few days,” his spokesman said Wednesday—if it would buy time for a “grand bargain” to reduce the deficit. However, even as Senate Republicans work with Democrats on a framework to raise revenue and slash spending, House Republicans are giving no indication of backing away from their no-tax pledge. Eighty House Republicans have signed a letter pledging opposition to Senate Minority Leader Mitch McConnell’s plan, to say nothing of the $3.7 trillion “Gang of Six” plan. Meanwhile, The New York Times reports that Wall Street firms have begun drafting “doomsday plans” in case the U.S. defaults on its debt.