Heard on CNBC: Speaker Boehner will prevent default with "coalition" of votes from Republican and Democratic members of the House, according to anonymous aid cited in NYT.
. . .Speaker John A. Boehner has told colleagues that he was determined to pass a debt-limit increase and was willing to approve a measure with votes from both parties.
If he blinks over the deficit why shouldn't he blink on the shutdown?
Wall Street must have spoken into his ear with no uncertain words that national default would cause recession on the scale of the Great Depression and reverberate negatively around the worlds' economies. Them and the US Treasury.
A Treasury Department report released on Thursday said the debt-limit impasse could cause credit markets to freeze, the dollar to plummet and interest rates to rise precipitously. A default might prove catastrophic, the report said, and could potentially result “in a financial crisis and recession that could echo the events of 2008 or worse.”That got his attention. So now he's willing to bend to the point of breaking.
Mr. Boehner had indicated he would be willing to violate the so-called Hastert Rule if necessary to pass a debt-limit increase. The informal rule refers to a policy of not bringing to the floor any measure that does not have a majority of Republican votes.The questions are -- What happens to the shutdown? Is it rendered moot? Does it reduce to a budget battle? If Boehner has folded on this, will he next fold on the shutdown and bring a clean CR to the floor for an up/down vote? Does President Obama continue to hang tough, or does he give once he's got a raised debt ceiling?
Only a single anonymous source at this point. Please pass the salt.