1. Ticking Clock

    Harry Reid Gives In on Taxes

    Senate Majority Leader Harry Reid, D-Nev., holds his hand up as he whispers to House Speaker John Boehner, R-Ohio,  during a photo opportunity in the House Speaker's office before a meeting on the debt limit increase on Capitol Hill in Washington on Saturday, July 23, 2011.(AP Photo/Harry Hamburg)

    Harry Hamburg / AP Photo

    World markets began to fall Monday after debt talks in Washington fell apart once again, with Japan and Hong Kong declining nearly 1 percent and the Shanghai Composite Index tumbling 3 percent. Back in D.C., Republicans attempted to broker a short-term deal, but Democratic leaders rejected it. Senate Majority Leader Harry Reid appears, however, to have accepted Republicans’ main demand by saying he would present a $2.7 trillion package that did not raise taxes. Reid may accomplish that by counting money saved by ending the wars in Iraq and Afghanistan. House Speaker John Boehner is expected to push for a pared-down plan that will cut $1 trillion in spending and extend the debt limit through the end of the year.

    Read it at The Washington Post