Lawmakers Fiddle as Debt Deadline Burns (Update 2)

With the deadline for raising the federal debt ceiling staring lawmakers in the face, Congress continued to struggle Sunday to find a way out of the morass. Majority Leader Harry Reid tried but failed to break a Republican filibuster holding up a vote on his proposal in the Senate.

Given that the rich — whose voice carries a lot of weight with these politicians — stand to lose enormous amounts of money in the stock market if a default occurs, it’s curious that we are not hearing more from them in the mainstream media. — ARK

Update: Lawmakers are reported to be closing in on a deal, the specifics of which are sure to please no one.

Update 2: Leaders from both sides of the aisle agreed to a deal on Sunday that would, according to president Obama, cut spending by $1 trillion over 10 years.

Los Angeles Times:

The Senate failed to advance debt-ceiling legislation moved by Senate Majority Leader Harry Reid, even as lawmakers say progress is being made on a final agreement that they hope can pass before the Aug. 2 deadline to avoid a federal default.

The vote, initially planned for late Saturday, ultimately proved inconsequential, with leaders working to agree on terms of a new plan. The Senate could return to vote on it Sunday evening if an agreement is reached.

“We’re cautiously optimistic,” Reid said earlier of talks with his Republican counterpart, Mitch McConnell of Kentucky. But he added: “As we know, one problem can stop the whole agreement from going forward.”

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