Debt Talks-Day 5

[thewiseguy]

Participants at Thursday's debt negotiations reviewed the options for raising revenue and cutting entitlements, but did not do much bargaining, according to a Democratic official familiar with the talks.

The negotiators are trying to build on a "foundation" of $1.7 trillion in spending cuts, the official said.

Obama asked the leaders to use Friday to go back to their respective sides and see what kind of agreement might pass muster. He said he expected to hear back from the leaders within 24 to 36 hours.

Obama will make a statement to the press Friday, the official said. More meetings are likely this weekend.

"During the meeting, Secretary Geithner warned the group that the world financial markets’ concerns are two-fold: the debt ceiling must be raised, and we must put in place a plan to deal with our deficit and debt. The Speaker used that warning to reiterate his concern that nothing the administration is offering to this point will resolve our debt problem. He continued to press the White House to get serious about reducing spending in a meaningful way."

http://www.politico.com/politico44/perm/0711/debt_talks_day_5_d1b292f6-04ef-4f32-adf9-496fb7da47f7.html

With this kind of progress I doubt it that we will have any deal in place. McConnell's proposal (Plan B) looks to be more likely at this point.