Consolidate Debt with Debt Consolidation Loans

House Rejects Bill To Raise US Debt Ceiling

On Tuesday the House has overwhelmingly refused to raise the legal limit on government borrowing. This decision was made due to the looming August deadline and it has set the stage for long haggling over the shape of the greatest debt reduction program in at least two decades.

Republicans And Democrats Vote Against The Bill

The Republican leaders stated that they would deny any rise without a plan aimed to curtail the spending and future borrowing sharply. Democrats are also leery of supporting the increase of debt limit that is extremely unpopular among the majority of the voters, polls show. They have abandoned the debt-limit measure on Tuesday and ignored the long-standing request performed by the Obama administration to increase the limit prior to plunging into a politically difficult and complex struggle over the federal budget size.

Risky Toying

House Speaker John Boehner was accused by some Democrats of toying with the matter running the risk that the negative votes could roil the financial markets. However, it turned out that bond traders were paying little attention to the move that was dismissed in Washington and by many observers on Wall Street as political theater.

Geithner stated that the Treasury would be made to default on at least some of the governmental obligations having no additional authority for borrowing. Such outcome could have far-reaching effects for the US economy and global financial markets.