This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

House Postpones Vote on Debt Ceiling Plan

WASHINGTON ( TheStreet) -- The House of Representatives postponed late Thursday a vote on a budget proposed by House Speaker John Boehner (R., Ohio) to cut federal spending by nearly $1 trillion and lift the debt ceiling.

Senate Majority Leader Harry Reid (D., Nev.) said earlier in the day that if the measure made it to the Senate floor it would have been voted down. President Obama also threatened to veto the House bill.

"The votes obviously were not there," said Rep. David Dreier, R-Calif. on Thursday evening.

If the debt ceiling isn't lifted by Aug. 2, the country risks default on its obligations. Administration officials have warned that interest rates could rise, the job market could tighten and stocks could collapse.

Boehner's plan would raise immediately the $14.3 trillion debt ceiling by $900 billion. This would be accompanied by $917 billion in spending cuts. The debt ceiling would then rise $1.6 trillion next year dependent on further cuts.

Reid wants to raise the debt ceiling by at least $2.4 trillion, while cutting spending by $2.2 trillion over the next 10 years. The debt ceiling wouldn't have to be raised again until after the 2012 election.

"No Democrat will vote for a short-term Band-Aid that would put our economy at risk and put the nation back in this untenable situation a few short months from now," Reid said earlier Thursday.

House Republicans and Senate Democrats planned to meet Friday at 10 a.m. EDT to plan strategy, according to reports.

-- Written by Joseph Woelfel



>To contact the writer of this article, click here: Joseph Woelfel

>To submit a news tip, send an email to: tips@thestreet.com.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
AAPL $124.75 0.00%
FB $80.78 0.00%
GOOG $524.05 0.00%
TSLA $206.79 0.00%
YHOO $44.45 0.00%

Markets

DOW 17,826.30 -279.47 -1.54%
S&P 500 2,081.18 -23.81 -1.13%
NASDAQ 4,931.8150 -75.9760 -1.52%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs