CNN.com: U.S. leaders struggle to reach debt deal as deadline clock ticks:
The aide said that party members are "struggling to see how they reach an agreement with significant debt reduction without buying time to work out the details."
Boehner aide Steel had earlier told reporters that "it would be terribly unfortunate if the president was willing to veto a debt-limit increase simply because its timing would not be ideal for his re-election campaign. We want the most significant deficit reduction possible, but linking the full faith and credit of the United States to presidential campaign politics is not a defensible position."
I expect that there will be a plan sometime Sunday for a "clean"--no changes to taxes or spending--bump in the debt ceiling in the short term and an agreement in principal for changes later this year. If that's not enough to goose the markets, expect QE3 before the year's out.
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