Taking a closer look at the political back and forth behind the government shutdown
John Kosich, newsnet5.com
9:04 AM, Oct 16, 2013
9:28 AM, Oct 16, 2013
WASHINGTON, D.C. - The U.S. Senate will reconvene Wednesday to complete the work of hammering out a compromise that will end the government shutdown and raise the debt limit.
They will gather with what could be added pressure placed on them by Wall Street. After the close of business Tuesday the Fitch credit rating agency raised the threat of a default on the nation's debt.
Fitch placed the U.S. credit rating on negative watch Tuesday, a step that would precede an actual downgrade. While Fitch says it expects the debt limit to be raised soon it adds, "the political brinkmanship and reduced financing flexibility could increase the risk of a U.S. default."
How Wall Street reacts to that in the morning may light a fire under Congress as the shutdown enters its 16 th day.
"I think at the end of the day a dramatic change on Wall Street will be the tipping point that finally cuts a deal," said WEWS Political Analyst Dr. Tom Sutton from Baldwyn Wallace University.
That's what happened in 2008 when Congress failed to initially pass TARP only to have stocks drop nearly 800 points. It passed a few days later.
Sutton thought the House proposal late Tuesday of a clean bill with the add on requiring the White House and Congress to enroll in Obamacare would have come the closest to any deal.
"One of the arguments has always been why doesn't Congress and the president get treated like the rest of us," said Sutton. "This would have basically said we're treating everybody the same including the people that put it in place.
"It would have been a great political coup for the Republicans to say they got something out of the Obamacare effort that they've made to try to curl it back, delay it whatever and instead some of the conservatives said no that's not enough and they ditched the deal."
"He's really boxed into a corner, I think if he had cut a deal with Republican moderates and gotten Democrats to go along with that he could have gotten a deal through maybe with this symbolic action I think that would have been his best bet," Sutton said.
He said the battle has left Boehner with his troubles. "Among Republicans, they're splintered and he's continuing to basically follow the lead of the most conservative 40. So we're looking at less than 10 percent of the entire house basically calling the shots and if you're speaker and that's the group you're continually trying to pay attention to I think that spells trouble for your majority continuing to see you as their leader."