Steve Benen: …. as Sunday winds down, there’s no end in sight to the Republican-generated crisis ….Senate Majority Leader Harry Reid is stepping up, preparing his own creative plan:
Mr. Reid … was trying Sunday to cobble together a plan to raise the government’s debt limit by $2.4 trillion through the 2012 election, with spending cuts of about $2.5 trillion. He would seek to avoid cuts to entitlement programs, but it was unclear how those savings would be achieved … Notably, the plan does not currently contain any new or increased taxes, an approach that many in his caucus would probably balk at.
At first blush, it may sound crazy that Reid would present a “compromise” with $2.5 trillion in cuts with no additional revenue – in effect, a plan that could have been crafted by Republicans weeks ago – but in Reid’s defense, it’s worth emphasizing that the Majority Leader probably counts half of those savings (at least) from ending the wars in Iraq and Afghanistan.
In general, Republicans don’t consider cuts to be cuts unless working people are suffering in some direct way, so his approach isn’t likely to go over well, but if GOP officials want a $2.5 trillion plan with no revenues, Reid is prepared to give them one. Add it to the list of possible ways out.
….. in the meantime, Wall Street is gearing up for a very busy morning:
U.S. stock futures fell, indicating the Standard & Poor’s 500 Index will slump after rallying within 1.4 percent of a three-year high, as President Barack Obama and Congress failed to reach an agreement on raising the federal debt limit, intensifying concern of a default…..
I’d note for context that the Dow Jones Industrial Average and the S&P 500 both closed at roughly at three-year highs on Friday. Republicans will likely wipe out those gains very quickly.
Full post here