Obama signs debt deal as markets reel amid fading truce
President Obama signed legislation to avert a default and avert a Treasury crisis, while Wall Street slumped on renewed weakness. The package allows a $900 billion borrowing rise and a $917 billion spending-cut first installment, with a 12 member deficit panel and potential $1.2 trillion automatic cuts if Congress fails to act.
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Budget battle moves on to new super committee
The plan creates a 12 member bipartisan group to haul out 1.2 trillion to 1.5 trillion in deficit cuts over ten years with possible broad across the board reductions if the panel deadlocks or faces rejection by either chamber. Democrats favor balanced revenues and cuts while Republicans resist tax hikes. The committee’s fate hinges on a simple majority vote.
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