White House: 'Significant' Debt Deal Possible

But Harry Reid isn't as optimistic about a deal

(NEWSER) - The debt deal may rest on the shoulders of Mitch McConnell and Harry Reid , but the two can't seem to agree on how optimistic to be. At a mid-afternoon press conference, McConnell sounded like a deal was in the offing. “Our country is not going to default for the first time in history; that is not going to happen,” the GOP Senate minority leader said, according to the Washington Post . McConnell added that he had personally spoken to both Obama and Joe Biden. “We now have a level of seriousness, with the right people at the table, that we needed.” John Boehner echoed the sentiment, notes Politico . More»

Boehner believes proposal must hit House today

(NEWSER) - We may very well be at zero hour: John Boehner has privately told Republicans that in order to get a debt ceiling measure signed by President Obama by the Aug. 2 deadline, it must be introduced in the House today. But despite the increasing likeliness of a US default, Politico reports that hope for a bipartisan deal has disintegrated. After meeting with the president and Nancy Pelosi last night, Harry Reid accused Boehner of taking a "my-way-or-the-highway approach," and reiterated the fact that his two-part plan —or any short-term plan—is "a non-starter in the Senate and with the president." Politico also notes that Obama, after three weeks of being highly visible, was on the sidelines during this weekend's developments, a potentially risky move this late in the game. More»

Obama says he will veto proposed budget amendment to Constitution

(NEWSER) - So much for the weekend plans of the United States Senate: The Chicago Tribune notes that Harry Reid said today he'll hold session every single day "from now until Congress passes legislation that prevents the United States from defaulting on our obligations." While little progress was made last week, President Obama met with John Boehner and Eric Cantor in secret yesterday in an effort to get deficit talks back on track before the Aug. 2 deadline, adds Politico . “We're making progress,” he said today. More»

Standard & Poor's threatens to downgrade US credit, too

(NEWSER) - With negotiations looking more hopeless than ever, a modified version of Mitch McConnell's backup plan is starting to get some serious traction, reports the Wall Street Journal . Conservatives originally swatted down McConnell's idea—basically giving President Obama the ability to raise the debt ceiling by $2.4 trillion over the next year in exchange for Republicans getting to blame him for it. But the pressure for a deal is growing: Standard & Poor's says there's a 50% chance it will downgrade the US credit rating on long-term debt. ( Moody's is worried, too .) More»

...even though 'this may bring my presidency down'

(NEWSER) - We already knew last night's debt talks did not go well —but not only did President Obama leave "abruptly," he really put his foot down, Talking Points Memo reports: "I have reached the point where I say enough," he said, according to those present. "Would Ronald Reagan be sitting here? I've reached my limit. This may bring my presidency down, but I will not yield on this." More of the latest developments:

• Obama reportedly gave both sides a deadline to determine whether they will seek long-term spending cuts or a short-term solution: tomorrow. His reason for leaving last night, at least according to one Democrat? Eric Cantor interrupted his closing remarks to push, for the third time, a short-term extension of the Aug. 2 deadline. Obama's response? "See you guys tomorrow."