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Ticking Clock Obama Open to Short-Term Debt Deal Mark Lennihan / AP Photo, Mark Lennihan

Obama Open to Short-Term Debt Deal

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.

July 21, 2011 6:08 AM