Reid Tries To Spike The Hopium Bowl But Obama Talks Down Optimism

(Tyler Durden)
Senator Harry Reid has a cunning new plan and says “we’re getting closer,” providing yet more hope that the US won’t tip inauspiciously over the edge of the economic abyss. The latest rumored deal proposal, to be presented at the White House meeting at 3pm, includes automatic spending cuts, a framework for budget negotiations, extends the debt ceiling for 6-9 months, and funds the government through December at current sequester levels. Doing so, as AP reports, would punt the fight over whether to lock in 2014 sequestration levels at $967 billion until December. And by extending the debt ceiling until the middle of next year, it would put the issue in the center of the heated 2014 midterm elections. While this provided some short-term optimism, Obama was quick to remind the market that “it appears that has been some progress in the Senate in fiscal impasse negotiations and will see if it is real when he meets congressional leaders.” Market rips on…
•SENATOR REID SAYS `WE’RE GETTING CLOSER’ TO AGREEMENTS: AP Then stalls on…

 •OBAMA SAYS REPUBLICANS RECOGNIZING DEFAULT IS NOT SMART •*OBAMA SAYS AFTERNOON MEETING WILL SHOW EXTENT OF PROGRESS

•OBAMA SAYS REPUBLICANS MUST SET ASIDE SOME PARTISAN CONCERNS Via AP,

Senate Majority Leader Harry Reid has privately offered Senate Minority Leader Mitch McConnell a deal that would reopen the government until mid-to-late December while extending the U.S. debt ceiling until next year, according to several sources familiar with the talks. The proposal would set up a framework for larger budget negotiations with the House over the automatic sequestration spending cuts and and other major deficit issues, the sources said. Moreover, Senate Democrats are open to delaying Obamacare’s medical device tax and a requirement that those receiving Obamacare subsidies be subject to income verification —but they would have to get something from Republicans in return, sources said. McConnell is still reviewing the offer and is privately huddling with groups of GOP senators Monday who could be key to providing enough votes in the Senate.

On Monday morning, McConnell met with Sens. John McCain of Arizona, Susan Collins of Maine, Lisa Murkowski of Alaska, Mike Johanns of Nebraska and Mark Kirk of Illinois. After leaving the meeting with McConnell, McCain said he would be “surprised” if a deal were struck on Monday but said the leaders are deep in the specifics. Under Reid’s proposal, the debt ceiling would be extended for 6-9 months, and the government would be funded at $986 billion until some point in December. Doing so would punt the fight over whether to lock in 2014 sequestration levels at $967 billion until December. And by extending the debt ceiling until the middle of next year, it would put the issue in the center of the heated 2014 midterm elections. Via Politico, Senate Majority Leader Harry Reid has privately offered Senate Minority Leader Mitch McConnell a deal that would reopen the government until mid-to-late December while extending the U.S. debt ceiling until next year, according to several sources familiar with the talks.

The proposal would set up a framework for larger budget negotiations with the House over the automatic sequestration spending cuts and other major deficit issues, the sources said. Moreover, Senate Democrats are open to delaying Obamacare’s medical device tax and a requirement that those receiving Obamacare subsidies be subject to income verification — but they would have to get something from Republicans in return, sources said. Article appeared first on Zero Hedge