Sunday, July 24, 2011

The problem is a dysfunctional Senate

Reid was “very angry” in the meeting with Boehner and McConnell, according to a Democratic official. Following the meeting, Pelosi escorted Reid back to her office because she didn’t want the furious majority leader to say anything to the press. Reid is “adamant” about no short-term extension of the debt ceiling, the official said.

I think bondholders are figuring this out. Absent serious reform of the Senate system, default is very soon. Put it another way, we cannot reform the Senate without a default.

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