Debt ceiling, spending cuts and taxes: Deal or no deal?

Posted By on July 21, 2011

While Americans wait and watch politicians haggling in Washington DC, the stock markets seems to be banking on a deal. Mid day on Thursday, the NYTimes mid-day reported that President Obama and Speaker of the House John Boehner were close to a deal … only to have Whitehouse spokesman Jay Carney quickly say that there was no progress to report.

Those of us pondering the message are left sitting and waiting … not that I’m planning to rush out and invest or anything.

New York Times:

Boehner and Obama Close to Deal, Leaders Are Told
By CARL HULSE and JACKIE CALMES – Published: July 21, 2011

WASHINGTON — The Obama administration has informed Democratic Congressional leaders that President Obama and Speaker John A. Boehner were starting to close in on a major budget deal that would enact substantial spending cuts and seek future revenues through a tax overhaul, Congressional officials said Thursday.

Full article

Wall Street Journal:

JULY 21, 2011, 2:27 P.M. ET

Deal Not Close, White House, GOP Leaders Say

WASHINGTON—The White House and top Republican leaders denied reports that President Barack Obama and House Speaker John Boehner were close to a “grand bargain” on the budget, news that jolted stock prices and boosted the dollar.

The markets moved after a Democratic aide said Messrs. Obama and Boehner were close to a deal that would include around $3 trillion in deficit-reduction measures, and wouldn’t raise taxes. This drew prompt denials from both ends of Pennsylvania Avenue.

“There is no deal. We are not close to a deal,” White House spokesman Jay Carney said. “The fact is there is no progress to report.”

A spokesman for Mr. Boehner said, “While we are keeping the lines of communication open, there is no ‘deal’ and no progress to report.” A spokeswoman for House Majority Leader Eric Cantor said there was no deal that Mr. Cantor is “aware of.”

Full Article


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