president. boehner and mcconnell s read-outs couldn t have been more different. what s fascinating is you saw boehner s read-out that in a sense was confrontational. they went there to the white house. there s this idea that president obama was going to talk about the small issues that he wanted to get done and boehner said, no, no, no, i m the big guy in the room. we can t do any more of this small ball. we really need to get things moving on the debt. he pressed him on the debt. they had this confrontation about it, whether or not you had would have a clean debt extension. president obama said, yes, i want a clean debt extension, no cuts in return. boehner said that was not acceptable. then you see michigan mcconnell who s a little more cordial and his read-out that it was a typical senate conversation, if you will. but look, chuck, long story short, what you re really seeing here is the gop putting this issue at the forefront of the debt. they believe it s something that they can
it. if you want to take the thing back to the beginning, that s where it begins, mthe politics f this. if you re saying harry reid and barack obama were naive for not including a debt extension in that negotiation, you re right, they were naive. they foolishly believed that republicans would never behave this insanely. hope and change and you saw it with this group of people who came up and went to congress and actually did what they said they were going to do, fight for cutting spending in this government. this brings up another good point. now you called them insane. i called him insane. no, you said, you said that barack obama could have never seen that this group of people would have acted so insanely. so now, maureen dowd comes them political suicide bombers and terrorists from mika, you re saying they re insane. no, i i will once again say if you re just a lawyer, and you re looking at negotiating tactics,
very close on raising the debt limit. joining me now, chief business correspondent for u.s. news & world report, rick newman. rick, i know investors are watching this extremely closely. what kind of impact could this have on the markets, both the mood and actual practicality of how they react? the markets are clearly very spooked. they ve been going sideways. six losses in a row, six days in a row. i don t think we re necessarily going to see a rout tomorrow. i think a lot of people will be sitting on the sidelines. the thing here is that it is still a very low probability that there s something like a default or that there is no debt extension. but if that does happen the consequences will be severe so financial firms are trying to figure out how do you prepare for something that s probably not going to happen but would be severe in it does happen. they re really not sure what to do. i have to ask people the question what i asked you, when i tried to lead new a very positive ans
defense cuts. that is making conservative republicans uneasy and unhappy. bruwhat republican leaders are doing is selling how far they have gotten the dialogue with the white house to come. it was three months ago. that the president insisted on a clean debt extension. we ll have a significant amount of spending reductions in this proposal. the second thing was he insisted on revenues and tax increases. there will not be tax increases in this proposal. you better believe that all key congressional leaders will cross their ies and figure out how many they can get on board. when you talk about the potential impact on the market they will not want a miscount. it comes down to numbers in more ways than one. and the debt prompting a rare scene in the u.s..
doing is selling how far they have gotten the dialogue with the white house to come. it was three months ago. that the president insisted on a clean debt extension. we ll have a significant amount of spending reductions in this proposal. the second thing was he insisted on revenues and tax increases. there will not be tax increases in this proposal. you better believe that all key congressional leaders will cross their ies and figure out how many they can get on board. when you talk about the potential impact on the market they will not want a miscount. it comes down to numbers in more ways than one. and the debt prompting a rare scene in the u.s.. normally we have seen them with a monologue and earlier today, two of the senate s