Wall Street should tell McCarthy to end 'hostage' drama

[Yo_Mama_Been_Loggin]

By Jonathan Bernstein / Bloomberg Opinion

House Speaker Kevin McCarthy went to New York on Monday to seek Wall Street’s support for his pursuit of a debt-ceiling deal tied to federal spending cuts. But financial industry pros know that attaching any strings to an increase in the borrowing limit is irresponsible. They should tell the speaker that they would be glad to support many Republican budget priorities later this year; but first, Republicans should accept an increase in the debt limit, without conditions, because that’s the only sure way to avoid the dire consequences of a default.

To allow the U.S. government to continue paying its bills, Congress must pass a measure to raise the federal borrowing limit. That means Republicans and Democrats need to come to some sort of agreement. In a speech Monday at the New York Stock Exchange, McCarthy outlined demands including new restrictions on Medicaid benefits and other limits to federal spending. He also tried, unreasonably, to shift the blame for the looming disaster to President Biden and the Democrats.

Democrats aren’t going to agree to McCarthy’s harsh demands. Biden has said that he wants to raise the borrowing limit without conditions. Yet McCarthy seems determined to put his energy into a probably doomed attempt to unify his dysfunctional party and shore up his standing as House speaker.

McCarthy’s alternatives — rounding up a majority of Republicans for a scaled-down proposal or allowing a clean debt limit increase to pass with a handful of Republican votes, something he could do immediately — would risk a revolt by the extremists within his party who want confrontation, not compromise.

https://www.heraldnet.com/opinion/comment-wall-street-should-tell-mccarthy-to-end-hostage-drama/

[Timewas]

1. LOL

Calling it a "debt" ceiling is a joke....Never any real ceiling involved in it.

[Fiendish Thingy]

2. They will.

Once the markets start gyrating uncontrollably as the default deadline nears, Kevin will get a visit from some Wall St. associates who will inquire if he will allow a clean bill on the floor for a vote, likely sacrificing his speakership, or if he is prepared to sleep with the fishes.

We won’t hear about it, but if McCarthy doesn’t cave and allow a floor vote on a clean bill soon enough, some very rich, very powerful people will intervene to ensure that he does.

[Zorro]

3. This showdown may be the very thing that dooms McCarthy's speakership

Here's hopin'!

[Martin68]

4. I imagine that is exactly what Wall Street is telling him - but probably not in public.

Talk about a bankrupt party - they can't win at the ballot box so they take the US economy hostage.