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Debt Ceiling Madness Goes to the Wire

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simoom7/26/2011 1:34:54 pm PDT

Yeah, the super-congress committee almost grantees some pretty draconian entitlement cut proposals, in that most of the identified discretionary spending cuts will be consumed in the first $1T leaving little else to go to for the second, larger, swipe at the pie. You also have the issue that the second debt ceiling increase is tied to passing whatever the super-congress comes up with, so the blackmail continues, and even still, I’d predict you’d end up deadlocked and back right where we started.

Also there’s the issue that Boehner’s plan may nut cut it with the ratings agencies:

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